|GS-III||Governing India through fiscal math||Economic Issues|
|Transforming livelihood through farm ponds|
|Going Electric: On plans To switch to Electric Vehicles.|
While it is important for a government to pursue a sound economic policy, including management of the public finances, it is yet another matter to make a fetish of any one aspect of it. The latter appears to govern this government’s approach to policy when the fiscal deficit is given pride of place in its self-assessment.
Thread of fiscal discipline
Actually, the point is two-fold:
Overall imbalance in the Budget –
Rewards yet to be seen
Implications of Revenue deficits
This has three implications:
Justification of the move
Concerns with it
Source: The Hindu
Prime Minister Narendra Modi explicated the need to implement innovative water management measures, stressing particularly the importance of rainwater harvesting both at the household and community levels. One intervention that has been tried out in various States, and needs to be taken up on a bigger scale, is the construction of farm ponds.
With an increased variability of monsoons and rapidly depleting groundwater tables, large parts of India are reeling under water stress.A number of peninsular regions like Bundelkhand, Vidarbha and Marathwada have been facing recurring drought-like situations.
Benefits of Farm Ponds
Farm ponds can act as effective harvesting structures and also yield healthy financial returns. But if they are promoted merely for on-farm storage of groundwater and canal water, they could accelerate, rather than reduce, the water crisis in the countryside.
Source: The Hindu
Need For EVs in India :
Problem of rapid global temperature increase has created the need for a reduction in the use of fossil fuels and the associated emissions.
India has committed to cutting its GHG emissions intensity by 33% to 35% percent below 2005 levels by 2030.
Economic development leads to rapid urbanization in emerging nations as rural populations move non-agricultural sectors in cities creating environmental problems.According to a recent study by WHO, India is home to 14 out of 20 most polluted cities in the world. EVs will help in tackling this problem by reducing local concentrations of pollutants in cities.
India imports oil to cover over 80 per cent of its transport fuel.
EVs can reduce dependence on imported crude oil promoting India’s energy security.
It will encourage cutting-edge technology in India through adoption, adaptation, and research and development.
EVs manufacturing capacity will promote global scale and competitiveness.
The promotion of EVs will facilitate employment growth in a sun-rise sector.
Clean and Low carbon Energy
The shift towards renewable energy sources has led to cost reduction from better electricity-generating technologies. This has introduced the possibility of clean, low-carbon and inexpensive grids.
Challenges for EV Industry in India:
Lack of a stable policy for EV production: EV production is capital intensive sector requiring long term planning to break even and profit realization, uncertainty in government policies related to EV production discourages investment in the industry.
Technological challenges: India is technologically deficient in the production of electronics that form the backbone of the EV industry, such as batteries, semiconductors, controllers, etc.
Lack of associated infrastructural support: The lack of clarity over AC versus DC charging stations, grid stability and range anxiety (fear that battery will soon run out of power) are other factors that hinder the growth of the EV industry.
Source: The Hindu
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