This article deals with ‘Money.’ This is part of our series on ‘Economics’, which is an important pillar of the GS-2 syllabus. For more articles, you can click here.
Introduction
Imagine a world without cash, credit cards, or digital payments. Long before money existed, people relied on the barter system—a simple way to trade goods or services directly.E.g.,
A farmer might swap 1 kg of rice for 200 grams of tomatoes.
A gardener could trade 1 kg of tomatoes for 50 grams of almonds.
Problems with Barter System
Double-Coincidence of Wants: It can happen only with a ’Double-Coincidence of Wants’ i.e. both people want exactly what the other has. For example, If you grow apples and want oranges, you must find someone with oranges who also wants apples. If they want bananas instead, no deal!
Search Cost or the Cost of Transaction is High: Finding the right trading partner could take hours, days, or even weeks. For example, a potter wanting bread might roam the village searching for a baker who needs pots.
Don’t favour Division of Labour / Specialization: Due to the above problems, all persons will try to become Jack of all trades but master of none.
Don’t favour Industrialization: Industrialists will have to find a large supply line with every person having a double coincidence of wants.
Don’t favour Concentration of Wealth: Since all the wealth is perishable. E.g., one can’t store tomatoes for an extended period.
The Problem of Divisibility of Value: In Barter System, you cannot always divide the value to buy whatever you want.
Not always Fungible: In Fungible items, division & mutual substitution is possible, e.g. Gold Bars, Currency Notes & Coins. But barter goods are not always fungible. E.g., if a diamond is cut into smaller pieces, the summation of all the smaller parts will not be equal to one bigger diamond. Hence, diamond isn’t fungible.
Benefits of Barter System
Barter System promotes Joint Family
Food Inflation is lower in Barter Economy compared to Money Economy.
This article deals with ‘Mesolithic Age’ . This is part of our series on ‘Ancient History’ which is important pillar of GS-1 syllabus . For more articles , you canclick here.
What is Mesolithic Age?
Mesolithic is a transitional stage between Palaeolithic and Neolithic, falling between hunting-gathering and food-producing societies.
Relative Chronology
In the Indian Subcontinent, the Mesolithic period can be placed between 10,000 BP and 5,000 BP.
It is also known as Epipalaeolithic. For a time, the Mesolithic was not considered a separate phase as it is perceived as a transition phase between the Palaeolithic and Neolithic.
Outside the Indian Subcontinent, the Mesolithic Phase is often absent, with cultures transitioning directly from Palaeolithic to Neolithic.
Among the prehistoric periods, it is the shortest phase.
Tools
At the end of the Pleistocene and the start of the Holocene, a major shift was observed in the toolkit of prehistoric people. They started using very small tools known as Microliths.
Mesolithic tools are known as Microliths because they are tools of very small stones. Microliths range in length from under 1 cm to 5 cm.
Some of these tools are miniature versions of Palaeolithic tools like burins, points, and scrapers. But tools in regular geometric shapes, like crescents, triangles, lunates etc., also came to the scene.
For the first time, we find bone tools as part of the Mesolithic tool kit.
For the first time, we also find composite tools, i.e. tools hafted, singly or in large numbers, onto wooden or bone handles to make spearheads, arrowheads, sickles, etc.
Climate
Around 10,000 years Before Present, the climate changed to the Holocene from Pleistocene.
The characteristics of the Holocene include
Warm and wet climate
More space was available for human habitation (as ice melted)
Availability of new resources like new crops (in wild form) and small and swift animals (fit for human consumption).
Expansion of forests and grasslands into previously arid areas
Human groups became highly mobile and began to occupy various ecozones.
Subsistence Pattern
During Mesolithic Phase
Hunting and scavenging continued
Food gathering continued
Fishing as a subsistence strategy started
Domestication of animals started
People used fire and perhaps roasted food.
Settlement Pattern
The period saw the spread of settlements to new ecological niches. There were many sites in the Ganga Valley and lesser sites in Peninsular India. This was the result of
An increase in population due to favourable environmental conditions
Due to smaller tools, they require stones in small amounts, which they get using various transport channels.
Some evidence of artificial habitational structures associated with the Mesolithic Age has been found in Belan Valley. However, the evidence is indirect, as the structures have not survived.
Burials
This period saw the beginning of the Burial System.
Grave goods were also placed in the burials.
Double burials, i.e. a man and a woman were buried together, have also been found.
Sites
Mesolithic sites in India include
Other developments
Population Growth: The population started to increase, mainly due to increased resources.
Pottery is absent at most sites except Langhnaj in Gujarat & Kaimur Region in Mirzapur (UP).
Mesolithic Art
Portable Art
Mesolithic people created small and easily movable objects with artistic or decorative significance. These included
Engraved bones found at Bhimbetka
Human teeth with geometric marks on it
Hole in teeth, possibly to be used as pendants or amulets.
Ostrich shell with designs on it
Paintings
Famous Sites: Bhimbetka (Madhya Pradesh) is the most famous and extensively studied site of Mesolithic rock paintings. Mesolithic paintings are also found in Ezuthu Guha (Kerala) and various sites in Odisha.
Material Used:
Colours were created by grinding minerals found in the region (like Ochre, Charcoal, etc.)
Brush was made out of squirrel tail and animal fur.
Things shown in the painting include
Animals like leopards, tigers, panthers, and rhinoceroses dominate the scene.
Hunting scenes depicting both individual and group hunting activities.
Women are depicted as gathering and preparing food.
This article deals with ‘Palaeolithic Age’ . This is part of our series on ‘Ancient History’ which is important pillar of GS-1 syllabus . For more articles , you canclick here.
Classifying Indian Stone Age
In the 19th Century, a three-age system was used, which is based on the idea that the age of stone tools was followed by Bronze & then Iron.
The next step was to identify changes within the Stone Age.
Indian stone age can be divided into
Palaeolithic Age (Old Stone Age): 2 Million Years (MYA) to 10,000 Before Present (BP)
Mesolithic Age (Middle Stone Age)
Neolithic Age (New Stone Age)
Relative Chronology of Palaeolithic Age
It is the oldest part of the human past. It ranges from 2 Million Years Ago (MYA) to 10,000 BP in India.
Broadly, Palaeolithic age can be further divided into Lower, Middle & Upper Palaeolithic ages.
Lower Palaeolithic Age: 2 MYA to 1,00,000 Before Present (BP)
Middle Palaeolithic Age: 1,00,000 Before Present (BP) to 40,000 Before Present (BP)
Upper Palaeolithic Age: 40,000 Before Present (BP) to 10,000 Before Present (BP)
However, there is a great deal of variation in the dates for different sites.
Sources
Ethnographic Studies: Ethnographic studies of modern Hunter-Gatherers to observe and study their behaviours, tools, and lifestyle and get insights into subsistence strategies, social structures, and use of natural resources during the Palaeolithic period. Ethnographic studies are to be used cautiously as their interaction with modern societies might have significantly changed their strategies.
Archaeology: Animal bones and fossils, stone tools, bone tools, rock paintings and artefacts
Study of Human Genes: Study of Mitochondrial DNA (mt-DNA) provides information on pre-historic migrations.
Tools Associated
The division into 3 sub-phases is based on the differences in the tools
Lower Palaeolithic: Used tools known as ‘Core Tools’ like Chopper Tools, Hand Axes and Cleavers
Middle Palaeolithic: Used tools known as Flakes
Upper Palaeolithic: More sophisticated tools called blades and burins were used
These tools were used for hunting, butchering, skinning the animals, recovering tubers and plant foods and processing the food. This can be ascertained by microwave analysis as tools develop different wear marks when they are used for specific purposes.
Notes
Tools were made at sites known as Factory Sites. These are generally located close to the sources of raw materials.
The oldest tools in the Indian subcontinent are found in Riwat in the Soan or Sohan river basin (now in Pakistan). It is known as Sohan or Soan Industry.
For the first time, the Palaeolithic tools were found in Pallavaram (near Chennai in Tamil Nadu) by Sir Robert Bruce Foote in 1863. They are known as Madrasian Industry.
Climate
All three phases of the Palaeolithic Age are associated with the Pleistocene (or Ice Age).
The characteristics of this age were
Cold and dry climate
Most parts of the earth were not fit for human habitation
However, there were alternate phases of glaciation and inter-glaciation.
About 10,000 years ago, the Pleistocene era gave way to the Holocene era (which continues to the present day), and climatic patterns that exist today came into being.
Human Species
The evolution of the human species was observed
Lower Palaeolithic: Homo Erectus
Middle Palaeolithic: Homo Sapiens
Upper Palaeolithic: Homo Sapiens Sapiens (Modern Man)
Note: Human ancestors are likely to have first evolved in Africa and later migrated to different parts of the world. The earliest human ancestor species to migrate out of Africa was the Homo Erectus.
Band Society
Palaeolithic societies consisted of what is known as Band Societies.
Key features of Band Societies include
Very Small Groups (typically between 20-50 persons)
Flexible Membership that allows for adaptability based on environmental and social needs.
Band societies were egalitarian, with only two kinds of social units.
Families: Foraging activities were performed by the family
Bands: Hunting of large game involved a group of males from several families. Membership of groups changed from hunt to hunt.
There was no formal, permanent or hereditary leadership – the leader was either
A Skilled Hunter acted as a leader during the hunt.
Elders led while giving advice or informal guidance due to their experience.
Resources, such as food or land, were not privately owned.
Subsistence
Hunting-Gathering: Palaeolithic societies depended on wild plants and animals for sustenance.
Whatever was collected or hunted was consumed immediately. The absence of surplus resources meant these societies operated on a subsistence economy.
Division of Labour: There was a division of labour based on gender roles
Men = Hunters (of Animals)
Women = Gatherers (of edible plants, fruits, nuts, roots, and seeds)
Settlement Patterns
They were spread all over the subcontinent except valleys of Ganga and Indus, coastal areas and north-eastern India. Heavy rainfall, uncongenial conditions and lack of raw materials might have prevented the occupation of these areas. Or perhaps there was no necessity for the pre-historic people to move into these areas.
Palaeolithic people lived in open air and shelters made of rocks, grass, leaves or reeds.
Occupation sites could be
Continuous: Bhimbetka & Hunsgi give evidence of continuous occupation
Temporary sites where people came, lived for some part of the year & moved on.
Totemistic Beliefs
Totemism refers to the belief system in which specific plants, animals, or objects are considered sacred or spiritually significant and often regarded as protectors.
Totemistic beliefs existed among Palaeolithic communities.
Palaeolithic Arts
The Palaeolithic period marks the beginning of the history of art. Examples of Palaeolithic art include
Bhimbetka Paintings: Bhimbetka (40 km from Bhopal) is the most important place where most paintings are found. It has about eight hundred rock shelters, five hundred of which have paintings.
Animal Teeth as Ornaments: Animal teeth with grooves have been found in Kurnool cave, suggesting they were attached to strings and worn as adornments.
Engraved Ostrich Eggshells: A piece of ostrich eggshell engraved with crisscross designs has been found in Ken River Basin, Patne and Bhimbetka
This article deals with ‘Artificial Intelligence – UPSC.’ This is part of our series on ‘Science and Technology’ which is an important pillar of the GS-3 syllabus. For more articles on Science and technology, you can click here
Introduction
Artificial Intelligence (AI) is a branch of computer science focused on enabling machines to perform tasks that typically require human intelligence. These tasks include learning, reasoning, problem-solving, perception, and decision-making.
It is concerned with
Learning from Experience
Recognising images (e.g., facial recognition in smartphones)
Solve Complex Problems
Understand Human Language
Create perspectives
The Nobel Prize (2024) for Physics was awarded to John Hopfield and Geoffrey Hinton, regarded as fathers of Artificial Intelligence, for training in Artificial Neural Networks (ANNs).
Side Topic: Traditional AI vs Generative AI
Traditional AI
Generative AI
Key Focus
Analyses data, performs specific tasks and automate decision making
Creates new data (text, images, music etc.)
Learning Approach
Explicit rules and algorithms
Data driven learning (Neural Networks)
Output
Structured outputs such as predictions, solutions or classifications
Entirely new content or creative outputs
Adaptability
Require manual intervention and reprogramming
Automatically adjust and improve its performance over time.
Benefits and Uses of AI
The benefits and uses of Artificial intelligence are immense and can be categorised in the following way
Governance
Policing: AI can be used to analyse crime patterns to allocate resources (e.g., Geolitica (formerly PredPol) is a company involved in predictive policing).
Smart Traffic Management: Cities like Bengaluru use AI to optimise signal timings.
Analyse Government Scheme: AI can be used to track the real-time performance of schemes like PM-KISAN.
Agriculture
Precision Farming: AI is used in Precision farming which is driven by data from soil analysis and crop monitoring. For example, Microsoft’s FarmBeats combines data with farmers’ knowledge and intuition to increase farm productivity and reduce costs.
Predictive Analytics: AI can be used in weather forecasting, pest control, etc., and plays an essential part in farming. For example, the Plantix app can identify pest infestations using an image of the plant.
Financial Sector
Fraud Detection: AI can flag suspicious transactions (e.g., Mastercard’s Decision Intelligence).
Robo-Advisors: Platforms like Zerodha’s Coin offer AI-driven investment advice.
Healthcare
Early Disease Detection: AI can be used for Early Disease Detection using processes like Google’s AI for Diabetic Retinopathy (prepared by Google by working to team of Ophthalmologists to identify signs of diabetes from eye scans).
Robotic Surgery: AI can help in performing robotic surgery. For example, the Da Vinci Surgical System translates a surgeon’s hand movements into real-time at the console.
Apple Watch uses AI to monitor heart rhythms and alert users about heart attacks.
Education
Personalised Learning: AI can enable personalised learning, create smart content, and automate grading and assessments. For example, Platforms like BYJU and Unacademy use AI for adaptive learning.
Proctoring: AI monitors online exams for malpractice (e.g., Proctorio).
Manufacturing
Predict Equipment Failure: AI can predict equipment failure using tools like GE Predix and help reduce downtime.
Logistics
Better Logistics: Uber and Google Maps suggest the best route using AI.
Warehouse Automation: Robots like Amazon’s Kiva sort and transport goods efficiently.
Driverless Cars: Autonomous vehicles that use AI for navigation
Energy
Smart Grids: Smart Grids balance the supply and demand of energy using AI and help integrate renewable sources (like Solar and Wind) into the grid.
Optimise Energy Use: Systems like Google’s Nest optimise HVAC usage, cutting energy costs by 20–30%.
Other Uses
Generative AI: These models generate human-like text, answer questions, and perform conversational tasks. Examples include ChatGPT, Deep Seek, etc.
Personal Assistants: Companies like Google, Amazon(Alexa), etc., have developed personal assistants. They work on AI. Hence, now everybody can have personal assistant for free.
Games playing: AI-intelligent games learn from their mistakes and are not monotonous.
Challenges and Ethical Concerns
Ethical-Moral Impulses: AI lacks human qualities like compassion, raising concerns about decision-making in critical situations.
Bias and Prejudice: Since AI Models are trained from existing literature and data, they can inherit human biases, leading to unfair outcomes.
Plagiarism: AI can be used for creating fake content and manipulating public opinion such as fake videos of politicians.
Job Loss: AI threatens jobs in IT, transportation (e.g., self-driving cars), and even professions like law and medicine.
Exacerbate Inequality: AI may exacerbate inequality by favouring high-skilled jobs over low-skilled ones.
Lack of Accountability: There is no clear distinction of who is to be held accountable, in case there was an unfavourable outcome
Super-intelligence: A sufficiently intelligent AI system can redesign itself or create a better successor system, leading to an intelligence explosion.
Environmental Impact: High energy consumption during AI model training contributes to carbon emissions.
AI Colonialism: Dominance of AI development by a few countries (e.g., the U.S., China, and Europe) creates a digital divide, reinforcing existing inequalities in economic, social, and political systems.
Threat to Democracy: AI can be used to manipulate elections, spread fake news, and influence public behaviour.
Why India should invest in building own AI Models?
Data Sovereignty & Security: AI models require vast amounts of data for training, and relying on foreign models can lead to data security risks.
Cultural & Linguistic Relevance: Most global AI models are trained on datasets that do not fully represent India’s diverse linguistic and cultural landscape. Indigenous AI models can be designed to better understand regional languages, dialects, and cultural contexts, leading to more accurate and inclusive AI solutions.
Economic Growth & Job Creation: Investing in AI model development can boost India’s tech ecosystem, creating new opportunities for AI researchers, engineers, and startups.
Cost Efficiency & Independence: Relying on foreign AI models often involves licensing fees and restrictions. Developing indigenous AI models can reduce costs in the long run.
Indian Government and Artificial Intelligence
1. IndiaAI Mission (2024)
The mission was approved by the Union Cabinet in 2024. It aims to establish a comprehensive AI ecosystem in India. It is to be achieved by
Democratizing Computing Access: Setting up affordable High-Performance Computing (HPC) infrastructure for startups, researchers, and academia.
StartUp Risk Capital: Financial support for early-stage AI ventures.
Socially Impactful AI: Focus on healthcare, agriculture, education, and sustainability.
Ethical AI: Ensuring transparency, accountability, and fairness.
Key components of the mission include
India AI Compute Capacity: Build 10,000+ GPU-based supercomputing infrastructure.
India AI Innovation Centre: Develop indigenous large multimodal models (LMMs) tailored to Indian languages and contexts.
India AI Datasets Platform: Host non-personal datasets (e.g., agriculture, healthcare) for public and private use.
IndiaAI Application Development Initiative: Promote AI adoption in governance (e.g., predictive policing, smart cities).
IndiaAI Startup Financing: Fund 500+ AI startups through grants, loans, and VC partnerships.
IndiaAI FutureSkills: Upskill 1 million professionals via online courses
Safe & Trusted AI: Ensuring ethical AI governance is aligned with the Digital Personal Data Protection Act (2023).
2. BharatGen Program
Initiative of the Ministry of Science and Technology.
It is a Large Language Model (LLM) project focused on developing a generative AI system capable of generating high-quality text, audio and images in various Indian languages.
3. Bharat Data Sagar
It aims to establish a vast repository of India-centric data that ensures that the AI models are deeply rooted in the country’s unique context.
4. National Strategy for Artificial Intelligence
NITI Aayog has identified five areas where AI can be useful. These include
Healthcare
Agriculture
Education
Smart cities and infrastructure
Transportation
5. Digital Personal Data Protection Act
It aims to strengthen data privacy and address AI-related concerns.
6. Budgetary Support
2022 Budget: AI declared a sunrise sector with tax incentives for startups.
2018 Budget: ₹100 crore allocated for National Mission on Cyber-Physical Systems
Global Measures
AI Action Summit: Summit was held in France to tackle potential risks of AI.
Hiroshima AI Process: It is an effort of G7 countries to regulate AI.
Global Partnership on Artificial Intelligence (GPAI): To guide the responsible development and use of AI. India is a founding member.
EU Framework for AI: It has divided the AI applications into four risk classes and
Prohibited Applications:
Mass-scale facial recognition systems (with limited exemptions for law enforcement)
AI systems aimed at behavioural control or manipulation
High-Risk Applications:
Examples include AI tools for self-driving cars.
These applications are permitted but require certification and must make their backend techniques open to public scrutiny.
Medium-Risk Applications:
Includes technologies like generative AI chatbots.
Allowed without restrictions but must provide detailed documentation of their functioning.
Users must be clearly informed that they are interacting with an AI, not a human.
Low-Risk Applications:
Minimal regulations, focusing on transparency and user awareness.
Last Updated: Feb 2025 (Female Labour Force Participation Rate (India))
Table of Contents
Female Labour Force Participation Rate (India)
This article deals with ‘Female Labour Force Participation Rate (India).’ This is part of our series on ‘Society’ which is important pillar of GS-1 syllabus . For more articles , you can click here.
Introduction
Earlier, the Female Labour Force Participation Rate (FLFPR) was continuously decreasing. But that trend has reversed now and Female Labour Force Participation Rate (FLFPR) has increased from 23.3% in 2017-18 to 41.7% in 2023-34 (according to PLFS).
The increase is FLFPR has been seen across the states.
But, women are underrepresented in white-collar and blue-collar jobs and dominate the pink-collar jobs (like nursing and teaching).
Feminization U-Hypothesis
Above trend can be explained with the help of the phenomenon of Feminization U-Hypothesis
With development,
Women’s labour force participation drops during the initial phase of industrialization (as women don’t have the skills required for new jobs and start to invest in education to acquire skills needed for new jobs).
However, in the long run, their labour force participation will increase once a certain level of development is reached.
Barriers for Women to join Work Force
Although FLFPR has increased, various barriers stop women from joining the workforce. These include:-
Social Causes
Patriarchal Mindset: Patriarchal norms of Indian society and social constraints on the freedom of women result in lower LFPR among women
Nuclearization of families: Childcare and household work restrict women’s work participation.
Caste factor: In some upper castes, a stigma is attached to women working outside the home.
Entry Barrier: Many sectors, like the Armed Forces, weren’t open to women till recently.
Lack of Care Economy: India has low levels of investment in Early Childhood Care and education. Hence, women can’t join the workforce due to caregiving responsibilities.
Unpaid Household Work: Economists distinguish between production for self-consumption and production for the market. Only the latter is counted as ’employment’. Most women work at home, but it is not counted in labour force participation since it is unpaid.
Use of overly broad categories: While measuring employment, productive works such as poultry farming and collection of firewood are considered domestic duty and women involved in such works are considered out-of- labour-force category.
Rising incompatibility of work: Due to structural change in the Indian economy, skilled jobs in the service and construction sectors are coming up, but women don’t have the necessary skills for these jobs.
Higher Education: As women pursue higher education, their entry into the job market is delayed (Feminization U-Hypothesis (explained below)).
An income effect of the husband’s higher earnings: The rise in men’s income has resulted in women’s withdrawal from the labour market.
Violence against women forces women to move out of the labour force. E.g.:
Violence against women in the workplace restricts their participation.
The mode of transportation is not safe for women restricting their movement.
Problems like looking after young children, lack of crèches facilities at the workplace etc. force working mothers to quit their job.
Importance of Women in Work Force
Economic Growth and Prosperity: The inclusion of women in the workforce positively impacts national economic growth.
Empowerment and Decision-Making: Women’s employment empowers them financially and boosts their say in household decision-making. For example, the National Family Health Survey (NFHS) shows that employed women tend to have more say in family matters.
Social Indicators Improvement: Higher LFPR improves social indicators such as infant and maternal mortality rates.
Demographic Dividend: India’s demographic dividend can be fully realized with a substantial participation of women in the workforce.
Diverse Perspectives and Innovation: Women’s participation brings a range of perspectives to the table, fostering creativity and innovation.
Steps taken to increase FLFPR
Skill Upgradation
Skill India Mission: Women are provided with a special focus under the Skill India Mission.
STEP Scheme: STEP or Support to Training and Employment Program for women provides skills to women to increase their employability or to make them self-employed.
Entrepreneurship
Stand-Up India Scheme: It promotes entrepreneurship among women (and SC/ST). Women can avail of Rs. 10 lakhs to 1 crore collateral-free loans from Indian banks to start greenfield enterprises in the non-farm sector.
Start-Up India: Various female led Start-Ups have received government support under the Start-Up India initiative. Additionally, 10% of the Fund of Funds for Start-Ups is reserved for women.
Credit Guarantee Scheme for Start-Ups (CGSS): Scheme has guaranteed loans of Rs.24 crore for women led Start-Ups as of Jan 2025.
Nandini Sahakar Scheme: 2% interest subvention is given to women led innovative cooperative projects
Marketing Support: Women’s trade fair participation to market their products is fully subsidised by the government.
ZED Certification: 100 per cent subsidy on certification for women MSMEs.
Procurement: 3% of procurement by CPSEs is reserved for women-owned enterprises.
Maternity Leave Benefits
The Maternity Leave has been increased to 26 months from the existing 12 months.
Stopping Gender Disparity
Code on Wages: It prohibits wage discrimination on the grounds of sex.
Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (PoSH): It enhances the safety of women at the workplace.
State Specific Schemes
Kerala: Smart Kitchen Project
It was launched by the Kerala government in 2021.
Under the scheme, soft loans are given to women to modernize their kitchens. These loans can be paid back in small instalments.
It helps to increase women’s participation in labour as their time and energy spent on household chores decrease.
Telangana: WE Hub (Women Entrepreneurs Hub)
It is Telangana state led incubator for women entrepreneurs.
It ensures that women Start-Ups have access to technical, financial, governmental, and policy support.
Till 2025, it has raised ₹177 crore and incubated 6376 start-ups.
Digital Economy and increase in FLFPR
Women face challenges in accessing the traditional job markets due to social causes, time restrictions, workplace safety, etc. (as mentioned above). However, the development of the digital economy has positively impacted women’s participation as the digital economy allows remote working. In the digital world, gender does not matter as much as in the physical economy.
Steps ahead
Promote Women-owned Enterprises in Rural India.
Bangladesh Model: Promote the Apparel & Shoes Sector as these two sectors generate the highest number of jobs for women per unit investment.
Open more sectors for women, like Defence Services.
Green Workforce: The Renewable Energy sector can create many jobs for women. For example, the Solar Urja Lamps project in Dungarpur, Rajasthan, to provide an economical and sustainable solar lighting solution where Women’s Self-Help Group (SHG) members were trained, resulting in the employment of 83 women and the establishment of five solar shops.
Skilling women so that they can fit in the post-LPG Reforms economy.
Promote woman entrepreneurship: Via Standup India and many other schemes.
Maternity Benefits: The government has already increased Maternity Leave to 26 weeks. Steps should be taken to extend it to the informal sector as well.
Self Help Groups (SHGs) like Kudumbshree should be promoted to make women, especially in rural areas, self-employed.
Japan Model (Womenomics): It includes getting more women into leadership positions.
Reshaping societal attitudes and beliefs about women’s participation in the labour force.
Recognize the unpaid household work of women in the employment data.
Side Topic: Low proportion of Women in Leadership Roles in India
Women’s representation on company boards in India is very low at a mere 18.3% (as of 2023). But this number is gradually increasing, which is a very positive sign. Women head many big corporates, for example, Pepsi by Indra Nooyi, Axis Bank by Shikha Sharma, etc.
In 2021, Germany made it mandatory for large listed firms to have at least one woman on their boards.
Under the SEBI regulations in India, the listed firms must have at least one female director on the Board of Directors.
Reasons for the lack of women in leadership roles
Glass Ceiling Effect: It restricts the promotion of women to the topmost positions. This glass ceiling exists due to the persistence of patriarchy in society and also since the present leadership consists of men who promote the interests of men only.
Leaky Pipeline Effect: The proportion of women decline as management grade rises
This article deals with ‘Demographic Dividend.’ This article is part of our series on ‘Economics’ which is an important pillar of the GS-3. For more articles, you can click here.
What is Demographic Dividend?
A country is said to be in the Demographic dividend phase WHEN
The majority of its population is in the working-age group.
The dependency ratio is minimum, i.e. very few people below 15 & above 64.
The age pyramid shows a bulge in the middle.
As East Asian countries in the past, and Ireland today, India is supposed to benefit from a ‘demographic dividend.’ This dividend results from large working-age people with a relatively small percentage of older people to support.
As of 2024, the median age of Indian is 28 years old, compared with 43 in China and the 38 in the United States and 48 in Japan. It implies a large and growing labour force, which can deliver unexpected benefits in terms of growth and prosperity.
But to reap the Demographic Dividend, the government have to
Invest in education & skill development of the young generation.
Produce enough good jobs to absorb them in employment (78.5 lakh non-farm jobs needs to be created annually until 2030).
Otherwise, this huge population would become burden onerous to handle instead of becoming an asset.
This article deals with ‘Gig Economy (in India) – UPSC Notes.’ This article is part of our series on ‘Economics’ which is an important pillar of the GS-3. For more articles, you can click here.
Introduction
Gig Economy is the economy in which organizations work with independent workers for a short duration. Companies like Uber, Ola etc., don’t treat the workers as employees of the company. Instead, they are treated as freelance contractors, and traditional employee rights like minimum wages, pension, provident fund, insurance etc., aren’t given to them by the company.
Features of Gig Economy
Gig Economy has two sets of agents (i.e. Buyer and Seller), which interact through intermediaries or aggregators.
Gig Worker is not an employee on the company’s payroll. Instead, they are treated as Independent Service Contractors.
They are paid in terms of ‘piece rate’ (depend on gigs completed) and ‘rewards’ (dependent on the rating given). The company doesn’t pay them a fixed salary.
Gig Workers (or contractors) aren’t eligible for social security incentives such as provident fund, insurance, pension etc., provided by the company.
Case Studies
Uber: It is the most famous company that employs the gig economy. It has re-defined the gig economy.
Udemy: In Udemy, instructors develop courses and sell them on the platform to those who want to learn that skill. Udemy is just the host of the content and pays the instructors according to the sale of their courses after cutting their share.
Airbnb: Airbnb provides a platform to the house owners with extra space to rent their space to the travellers. Airbnb provides the platform to connect buyers and sellers and take the commission in return for services.
Status of Gig Economy in India
Reasons for increase in Gig Economy in India
Widespread Access to the Internet: The gig economy has boomed due to affordable data plans and digital connectivity, even in remote and rural areas.
Government Initiatives: Rapid increase in the Start-Up ecosystem in India owing to various government initiatives (like Start-Up India).
Changing Work approach: Remote and flexible employment is becoming mainstream post-Covid, attracting youth and professionals to gig platforms like Upwork and UrbanClap.
Rise in demand for Contractual Employees: Sectors like e-commerce and logistics prefer contractual gig workers to meet seasonal demand (e.g., Amazon and Flipkart hiring during festive seasons).
Cost Optimization by Businesses: Companies increasingly outsource tasks to gig workers to reduce operational costs.
Women Empowerment: Gig work offers flexibility, encouraging women in rural and urban areas to join the workforce (e.g., Meesho for home-based entrepreneurs).
Benefits of Gig Economy
For Workers
Job Creation: The gig economy generates a large number of jobs.
Flexibility: The gig economy provides flexibility in terms of working hours.
Independence: Gig workers operate as independent contractors and aren’t answerable to any boss (because they are their boss)
For Consumers
Lower Cost of Service: The gig companies can provide the same service at a lower cost due to economies of scale and efficient use of resources.
Quality of Service: The quality of service is higher as the Aggregator companies ensure quality of service and compliance.
For Companies
Optimization of Resource Utilization: It provides an easy way to monetize resources like vacant spaces in homes (Airbnb) and ordinary vehicles (Uber and Ola).
Cost Efficiency: It guards companies against fluctuations in demand as they don’t have to pay workers if there is a lack of demand.
Issues with Gig Economy
The gig workers don’t have the cover of social security such as provident fund, pension etc.
There is no security of a job in the gig economy.
The income of the gig workers is not fixed, and companies enjoy large powers vis-a-vis workers enabling them to exploit workers.
The gig economy is not adequately regulated and gives a lot of opportunity to the companies to evade taxes and harass workers.
Stress on the gig-workers due to pressure from algorithmic management practices and performance evaluation on the basis of ratings. E.g., monitoring of Ola and Uber employees.
Limited opportunities for skill up-gradation and career progression that are attached to traditional jobs.
Potential exploitation of workers due to the individualistic nature of gig work, gig workers cannot form unions and bargain collectively.
Steps taken wrt protection of workers in the Gig Economy
Steps taken by Indian Government
Budget 2021-22: The Government has announced that the law on minimum wages act and Employee State Insurance Corporation will apply to all firms.
Regulation: Central Government has announced that Taxi-hailing apps can’t charge more than 20% commission from driving contractors. Along with that, contractors cant work more than 12 hours per day.
Rajasthan Government’s Initiative: The Rajasthan government has formed the Tripartite Board to automatically register gig workers upon joining a platform. The registered gig worker will be eligible to
Medical and accident support
Educational aid for workers’ children.
Access to other welfare schemes.
International Examples
In 2021, the UK Supreme Court ruled that Uber drivers should be considered workers and not freelance contractors, making them eligible for all employment-related benefits such as minimum wage, annual leaves, and insurance.
This article deals with ‘Skilling People in India – UPSC Notes.’ This article is part of our series on ‘Economics’ which is an important pillar of the GS-3. For more articles, you can click here.
Need to Skill people ?
The answer to this question lies in analysing the percentage share of GDP & employment of various sectors of the economy.
49% of people engaged in Agriculture contribute to only 18.7% of GDP. Shifting these people to the manufacturing & service sector by skilling them will significantly increase the economy’s overall productivity. For example, a farmer in Bihar with 1 hectare of land earns ₹50,000 annually, while a factory worker in Chennai or Pune with basic technical skills earns ₹3–4 lakh/year.
Skilling the workforce will help reduce disguised unemployment as workers can be employed in productive sectors. For example,
It will also help in land consolidation because marginal farmers will go to the service & manufacturing sectors. They can sell their lands or lease them to those who want to keep working in agriculture.
With over 65% of the population below 35 years, India has a narrow window of opportunity to capitalize on its demographic advantage by skilling the people.
Companies coming from abroad will need a skilled workforce. Skilling the workforce will make India attractive for MNCs to set up production houses. For instance, Samsung’s Noida plant employs 70,000 workers but imports technicians from South Korea due to local skill shortages.
Why do people in India lack skills?
Education: The education system heavily relies on producing the clerical rather than the skilled workforce.
Rapidly changing Technology: There is always a mismatch between the speed of technological change due to advancements in AI, automation, blockchain, and robotics and the rate of changing skill sets.
Social Acceptance: Our society gives lesser recognition to vocationally trained people (such as carpentry, plumbing, and tailoring). In contrast, countries like Germany and Switzerland have robust vocational education models where skill-based jobs are highly respected and well-paid.
Pending Labour Reforms: Employers generally prefer automation and contract labour to save themselves from labour laws and, as a result, don’t invest in skilling the workers.
Poor Infrastructure and Quality in Skill Training Centres: Industrial Training Institutes (ITIs) and Skill Development Centres lack proper infrastructure, experienced faculty, and industry partnerships.
Programs to Skill
1. Skill India Mission
Ministry of Skill Development and Entrepreneurship (MSDE)
It was created as a separate ministry in 2014.
Objective: Address India’s manpower needs and equip youth with industry-relevant skills.
Key Functions of the Ministry include
Policy Framing: Develop policies like the National Skill Development Policy.
Scheme Implementation: Implement schemes like Pradhan Mantri Kaushal Vikas Yojana (PMKVY), UDAAN, a Special Industry Initiative for J&K, etc.
Industry Partnerships: Promotes PPPs and CSR funding for skill development.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
The scheme works under the Skill Ministry.
Objectives: Enable a large number of Indian youth to skill them with industry-relevant skills through training, thus helping them secure a better livelihood.
Primary Target Group: 10th or 12th-grade dropouts, migrant workers, rural youth, and women.
PMKVY has two training components: Short-Term Training and Recognition of Prior Learning.
Under the provisions of the scheme
It is a certification scheme under which certification of completion, along with ₹8,000, is given to those who successfully pass the program.
After completion, a person can also apply for a loan worth Rs. 20,000 to 1.5 lakh to start a venture.
Soft skill & computer course is also provided.
The main focus of the scheme is 10 or +2 dropouts.
The scheme is presently in its third phase. Several new initiatives, like the Upskilling for Weavers and Artisans in Traditional Crafts in Nagaland and Kashmir, digital marketing etc., were launched under PMKVY 3.0.
PM Internship Scheme
The scheme was announced in the Budget for 2024-25.
Nodal Ministry: Ministry of Corporate Affairs
Aim: To provide internships to 1 crore youth in top-500 companies (like Tata, ICICI, Zomato, Flipkart, etc.) over the five years.
Age Eligibility: Youth in the 21-24 age group. Selection will be based on academic performance, skill assessment tests, and industry demand.
Under the scheme,
The Government of India pays a Monthly Stipend of ₹4,500 per month. Additionally, ₹500 per month is contributed by the company (which can be adjusted in its CSR budget).
The Government also provides an additional ₹6,000 to each candidate to cover miscellaneous expenses (travel, food, training materials, etc.).
National Apprenticeship Promotion Scheme
The scheme aims to encourage industrial establishments to undertake apprenticeship programs by providing financial incentives.
Under the scheme, the Government reimburses 25% of the stipend (up to ₹1,500 per apprentice per month).
Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU GKY)
The scheme was launched in 2014 with the Ministry of Rural Development (MoRD) as the nodal agency.
It is a component of the National Rural Livelihoods Mission (NRLM).
Main Features of the scheme include
The scheme follows the Placement-Linked Approach.
Target beneficiaries include rural youth between 15-35 years.
Training is provided by accredited agencies, known as Project Implementing Agencies (PIAs), selected through a rigorous screening process.
National Skill Development Corporation (NSDC)
NSDC is owned by the Ministry of Skill Development & Entrepreneurship (MSDE) and the private sector in a 49:51 ratio.
Key Function: Fund and support vocational training institutions to promote skill development.
Skill Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP)
It is a World Bank loan-assisted program.
Objective: To decentralize skill development and align it with local needs and youth aspirations.
Indian BPO Promotion Scheme (IBPS)
IBPS works under the supervision of the Ministry of Electronics and IT.
The scheme incentivizes the establishment of BPOs and their extension to Tier 2 and Tier 3 cities with financial support in the form of Viability Gap Funding.
Indian Institute of Skills
PM laid the foundation stone of the instruction in 2017.
“Indian Institute of Skills” is inspired by the Singapore training model.
The institute would adopt various best practices from the country.
Indian Skill Development Service
To attract dedicated young and talented administrators for skill development, the Government has established ISDS, whose first batch was inducted in 2019.
Digi Saksham
The scheme aims to improve the employability of youth by equipping them with essential digital skills.
Memorandum of Understanding
The government has signed MoUs with China, the UK, Australia, and Germany for Skill Development in India.
Schemes for Skilling the Minorities
a. Ustaad Scheme
Ustaad scheme aims to skill minority artisans.
The main emphasis of the scheme is on
Kashmiri Embroidary
Muslims of Kashmir
Jardosi
Bengali Muslims
Phulkari
Punjabi Sikhs
Thangka Painting
Buddhists
Hunar Haats are organized under the Ustaad scheme, thus providing platforms for marketing artisans’ products belonging to minority communities
b. Sikho aur Kamao
The scheme works under the Ministry of Minority Affairs.
Under the scheme, the person belonging to the Minority Community can get computer knowledge, tailoring skills, etc., from the Private Institution. The Government later reimburses that institution.
c. Manas Scheme
MANAS = Maulana Azad National Academy for Skill
It is an innovative scheme and works on the principle of ‘Giving back to the Community’ under which the leading celebrities in various skill sets are used as the driving force behind the skill development projects in their respective fields.
Criticisms / Challenges
There is no standard definition of skill in India. Hence, there is no way to measure whether the skill is imparted or not.
The availability of good quality teachers to impart skills is not adequate.
The industry does not value the certificates that these programs give.
The curriculum is not updated at the regular interval.
There is duplication of efforts in these schemes. Instead of many schemes, there should be one universal scheme.
There is a need for constant up-gradation of skills. These programs don’t recognise this.
This article deals with QUAD – UPSC.’ This is part of our series on ‘International Relations’ which is an important pillar of the GS-2 syllabus. For more articles, you can click here.
Introduction
Quad is a strategic diplomatic partnership between Australia, India, Japan, and the United States to support an open, stable and prosperous Indo-Pacific that is inclusive and resilient.
Timeline
2004
The origins of the Quad can be traced back to the ‘Tsunami Core Group‘, which was formed in the aftermath of the Indian Ocean Tsunami of December 2004 when the above countries came together to assist countries devastated by the Tsunami.
2007
The first meeting of Quad was held on the sidelines of the ASEAN Regional Forum, and QUAD was formalized.
2017
Quad remained dormant for nearly a decade.
2017
The four countries again came together owing to China’s rising threat with the stated aim of establishing a rules-based international order.
2020
Malabar Naval Exercise, which started in 1992 between India and the US and expanded in 2007 with the inclusion of Japan, was expanded to include Australia. Hence, the Malabar Naval Exercise became the first official grouping of the Quad
2021
First Quad Leaders Summit was held (virtually)
2024
India hosted the Quad Leader’s Summit
Structure
Membership: USA, Australia, Japan and India
QUAD does not have any Secretariat or Permanent decision-making body. It is maintained by Meetings and Military Drills (like the Malabar Naval Exercise).
Note: QUAD can be expanded QUAD-Plus with the inclusion of South Korea, Vietnam, New Zealand, and other countries sharing the same threat and values.
Key Pillars of the QUAD
Securing the Strategic Sea Routes in the Indo-Pacific
Securing Rules-based Global Order
Establishing a Liberal Trading System
Offer Alternative Debt Financing
Addressing contemporary global issues.
Significance for India
Balancing the Chinese Power
QUAD partners can support India if Chinese hostilities rise on the Indo-China borders.
India is working with Quad partners to offer alternatives to China’s Belt and Road Initiative, a project that undermines India’s territorial sovereignty and regional primacy.
Cementing Indian position in the Indo-Pacific
Due to its favourable topographical location and peninsular geography, India has widespread trade and cultural connections with the Indo-Pacific littorals. QUAD provides a platform for India to advance its East Asian interests and further strengthen its Act East policy.
Net Security Provider
Quad membership will help India achieve the objective of being a Net Security Provider in the Indian Ocean.
Supplementing India’s Defence Capabilities
Cooperation in the field of defence among Quad members through joint patrols, exchange of strategic information, etc., can help India overcome its limitations pertaining to finances, naval capacity, military reconnaissance, and technological and surveillance capabilities.
Economic Advantage
Economically, the Quad will also make India a preferred destination for investment, with supply chain disruptions caused by dependence on China.
Possibilities of Wider Cooperation
During the COVID epidemic, the QUAD decided to coordinate on COVID-19 vaccines, Climate change and new-age Technology. This points towards the fact that QUAD is far more than a security pact against China.
Negatives of Quad
Contrary to BRICS and SCO: India’s proactive engagement with the Quad can undermine her relationship with BRICS & SCO, where China is an important partner. The Quad has deteriorated Sino-Indian and Indo-Russian relations.
Divergence on acceptable risks and costs: The acceptable risks and costs of Chinese threats are different for all the QUAD members owing to factors such as direct territorial disputes with China, their proximity and the risk of retaliation by Beijing.
Seen as Cold War Mentality: China has criticized the Quad diplomacy as reflective of a “Cold War mentality” and an attempt to establish an “Asian NATO”.
Less Institutionalization: The Quad remains relatively lightly institutionalized in its current form. It is neither a security arrangement nor a trade group, which could undermine its credibility and influence.
Conflicting signals from the US: The US announced a new trilateral defence partnership with Australia and the UK (AUKUS), leaving Japan and India from QUAD.
No Provision of Collective Security: Unlike NATO, the Quad does not have the provision for collective defence
This article deals with ‘Weaponization of Space‘. This is part of our series on ‘Science and Technology, which is an important pillar of the GS-3 syllabus. For more articles, you can click here.
Introduction
Weaponization of Space includes
Placing weapons in outer space or heavenly bodies
Creating weapons that will travel from Earth to attack or destroy targets in space.
Background
The weaponization of Space started in the 1960s with the Soviet HUNTER KILLER low-orbit satellite system designed for space combat.
In 1967, the Outer Space Treaty barred the placement of weapons of mass destruction (WMDs) in outer space. However, the treaty was silent on the deployment of non-WMD weapons such as space-based laser systems.
In 1983, the USA launched STAR WARS (or Strategic Defence Initiative) aimed to create Space-based missile defence system aimed at intercepting and destroying nuclear missiles.
Chinese Space Weaponization
In 2007, China successfully tested its first ASAT (Anti-satellite) missile.
Indian Developments
Mission Shakti: Mission Shakti is an Anti-Satellite Missile made by DRDO.
NATO’s Collective Security
In a 2021 summit statement, NATO leaders have expanded the use of their all-for-one, one-for-all mutual defence clause to include a collective response to attacks in space.
Outer Space Treaty, 1967
It was signed in 1967.
India is also a member of the Outer Space Treaty.
Main Provisions
Exploration & use of outer space shall be done for the benefit of all countries.
Outer space shall be the province of all mankind.
Outer space is not subject to the claim of sovereignty.
States shall not place weapons of mass destruction in outer space.
Astronauts are to be regarded as the envoys of humankind.
States shall be responsible for space activities, whether carried out by government or non-government entities.
Limitations of Treaty
The vague definition of terms like Weapons of mass destruction makes it liable for misuse.
It is a 20th-century treaty in a 21st-century digital age with cyber-digital weapons. For example, what if, through any radio wave attack, all the digital infrastructure of any state is paralysed?
Lack of a ‘Space Police’ makes it toothless to enforce the provisions.
Factors behind Weaponization of Space
Protecting Space Assets: Countries are weaponizing their space to safeguard their satellites in space against other countries’ Anti-Satellite (ASAT) missiles or space-based weapons.
Enhanced Combat Capabilities: Space-based systems provide tactical advantages like precise targeting of enemy assets.
4th Dimension of Warfare: Space is now considered the 4th dimension of warfare after land, air and water. Many countries, like China, Russia, the USA, etc, are focusing on dominating the 4th dimension of warfare, leading to increased weaponization of space.
Insufficient Existing Treaties: While the Outer Space Treaty (OST) explicitly prohibits the deployment of weapons of mass destruction in space, it does not address non-WMD weapons.
Impacts of Space Weaponization
Disturbance in Global Balance of Power: The Weaponization of space opens up a new front in space and disturbs the balance of power, triggering geopolitical tensions.
Arms Race in Space: Space Weaponization by any country results in an arms race in outer space.
Creation of Space Debris: Tests like China’s 2007 ASAT or India’s Mission Shakti in 2019 generate large amounts of space debris.
Peaceful exploration of outer space will be impacted: Placing weapons in outer space increases the risk of turning space into a battlefield, impacting exploration of outer space and research activities.
Way forward
reat Space as a Global Common: Like Antarctica, outer space should be considered a global common under international law.
Strengthen International Treaties: Update the Outer Space Treaty (1967) to include provisions prohibiting all forms of weaponization, including non-WMDs.
