The Indian government focuses on empowering individuals for market success and providing a safety net for the disadvantaged. Initiatives like PMKVY, SANKALP, and UDAAN aim to harness the demographic dividend by offering short-term training and redirecting school dropouts into technical or vocational programs through public-private partnerships.
To promote research in the mining sector, the Ministry of Mines introduced the “SATYABHAMA” portal. Additionally, community mobilization initiatives empower communities to improve health, hygiene, education, and living standards, contributing to economic growth and poverty alleviation.
- Efficient resource use maximizes outcomes with minimal natural resources, enhancing benefits while minimizing usage.
- Viability Gap Funding (VGF) aids businesses in overcoming competitiveness barriers, facilitating scale-building and technology upgrades.
- Policy reforms should focus on comprehensive resource efficiency strategies throughout life cycle stages.
- Taxes, like value-added taxes, can promote environmentally friendly practices in mining, construction, and manufacturing.
- Building capabilities in Resource Efficiency (RE) involves key players, such as Urban Local Bodies (ULBs), MSMEs, and the informal sector.
- Dedicated institutions are essential for developing and assessing Resource Efficiency measures, ensuring a structured approach.
- Gathering baseline data and developing indicators are crucial for measuring and monitoring progress in resource efficiency.
- Eco-labels and standards, along with awareness and market availability, are vital for promoting resource-efficient practices.
- Innovative business models prioritizing resource efficiency create opportunities for growth and diversity, benefiting both businesses and financial institutions.
- Industrial cluster focus leads to savings and productive investments, aligning land, labor, capital, and organization factors.
- Resource efficiency reduces extraction, import dependency, and energy consumption, benefiting the environment and lowering costs.
- Collaborative platforms foster new business models, resource-efficient products, and successful demonstrations, driven by technology and behavioral change.
- Integrated resource efficiency policies drive the transition, supported by financial literacy programs and suitable products.
- On August 6, 1952, the National Development Council, also known as Rashtriya Vikas Parishad, was established with the aim of uniting and energizing the nation’s efforts and resources to support the planned development. Its purpose is to foster a unified economic policy across crucial sectors and ensure the equitable and swift progress of every region in the country.
- This constitutional body includes representatives from both the Central government and the States. At its helm is the Prime Minister, leading a team that comprises Union Cabinet Ministers, State Chief Ministers, representatives from Union Territories, and members of the Planning Commission. Together, they collaborate to guide and shape the developmental trajectory of the nation.
Functions of NDC are
- Providing guidance on creating the National Plan, including assessing available resources for its formulation.
- Evaluating the National Plan put forth by the Planning Commission.
- Deliberating on crucial social and economic policy matters that impact national development.
- Periodically reviewing the implementation of the Plan and suggesting necessary measures to achieve its goals.
- Serving as a crucial link between the Union government, Planning Commission, and State Governments.
- Acting as a platform for open discussions on plans, programs, and broader social and economic issues of national significance.
- Fostering a democratic environment where States openly express their views without passing resolutions within the Council.
Finance Commission: Article 280 of Indian Constitution
- The commission will suggest to the president how to share taxes between the Union (central government) and the States. It will also recommend how to divide the respective shares among the States.
- The commission will define the principles that should guide financial assistance to the states from the consolidated fund of India.
- The commission will address any other financial matters referred to it by the President to ensure sound financial management.
Primary Duties of a Finance Commission
Deciding on the distribution of tax revenue between the national government and states involves determining the allocation method. This includes determining financial aid for states in need and establishing principles guiding these grants. Additionally, identifying strategies to augment a state’s Consolidated Fund is crucial. These funds can further support local Panchayats and Municipalities based on recommendations from the State’s Finance Commission, fostering effective and targeted financial assistance.
State Finance Commission
- In the early 1990s, India witnessed significant decentralization reforms aimed at empowering local communities through their respective local governments. While Panchayats and municipalities (representing rural and urban areas) existed prior to the 73rd and 74th amendments of the Constitution in 1993, these amendments played a crucial role in boosting the decentralization process. They introduced a system of self-government for Panchayats and municipalities, granting them increased powers, functions, and authority.
- The amendments envisioned Panchayats and municipalities as institutions of self-government, emphasizing their role in the multi-layered federal polity of India. Furthermore, they highlighted the integral connection between public finances and the devolution of powers to these local bodies. To ensure financial autonomy, the periodic constitution of State Finance Commissions (SFCs) was mandated, facilitating the fair distribution of financial resources.
Human Resource Mobilization
- Skill Development Cell enhances youth lives via AICTE-approved colleges, focusing on employment and self-employment opportunities.
- AICTE’s Start-Up Policy promotes tech-based startups among students, fostering entrepreneurship and employment.
- PMKVY-TI by AICTE offers engineering skills to dropout students, placing them in private sector jobs.
- Community College Scheme aids AICTE-approved polytechnics, aligning courses with NSQF for 74 participating institutes.
- EETP collaborates with AICTE-LinkedIn, AICTE-ICT Academy, and AICTE-Monster.com to boost employment under skill initiatives.
- Mahatma Gandhi NREGA ensures 100 days of rural employment, with one-third reserved for women.
- National Urban Livelihoods Mission (NULM) organizes urban poor into self-help groups, providing skill development and self-employment support.
- PMSBY and PMJJBY offer accidental death cum disability insurance and life insurance, highlighting the government’s commitment to social security.
- Atal Pension Yojana targets the unorganized sector, while “Make in India” supports energy-efficient technologies through TADF.
- Government initiatives encourage resource efficiency and Sustainable Resource Management (SRM) in manufacturing.
Financial Resource Mobilization
- Established on the Narasimham Working Group’s advice in 1975, RRBs address rural banking needs, crucial in RBI’s sector-specific loan allocation.
- Banks were allowed by the RBI to engage business correspondents, enabling the delivery of financial services directly to people’s doorsteps. Banks introduced no-frills accounts, which do not mandate a minimum balance, making banking accessible to a wider section of the population.
- In August 2005, the RBI eased KYC requirements for opening bank accounts, simplifying the process with the introduction of Aadhaar. To expand the ATM network, the RBI permitted non-bank entities to establish White Label ATMs.
- To enhance financial inclusion, a digital strategy integrates banking (Jan Dhan), biometric identity (Aadhaar), and transactions (Mobile). Specialized banks were established to cater to specific needs, promoting financial inclusion. MUDRA Bank, created to provide refinancing to micro-finance institutions, supports lending to non-formal sectors such as MSMEs through the PM Mudra Yojana.
- RuPay Cards significantly increased their market share, offering an alternative to international payment systems. Commercial banks, at the RBI’s request, launched financial literacy centers to enhance public understanding of financial matters.
- Aadhaar implementation played a role in promoting financial inclusion among women. The National Payments Corporation of India introduced the UPI platform, simplifying digital transactions. Established in 2017, this center implements the National Strategy for Financial Education.
Natural Resource Mobilization
Nation Green Corridor Programme: This project aims at synchronising energy that is produced from renewable energy sources with the conventional stations. National Clean Energy Fund: It is the fund created using the carbon tax for backing research and development of innovative eco-friendly technologies.
National Biogas and Manure Management Programme (NBMMP): It is a central scheme that promotes setting up of Family Type Biogas Plants mostly for the use of rural and semi-urban households. The energy is generated from biodegradable wastes such as cow-dug, wastes from the garden, kitchen, etc.
Biomass power and cogeneration programme: This scheme aims at optimum utilization of the country’s biomass resources in the power grid.
National Housing and Habitat Policy, 2007 and the Pradhan Mantri Awas Yojana (PMAY), 2015 emphasize on developing appropriate ecological design standards for building components, materials and construction methods. Reduced waste generation by RE will contribute towards fulfilling the goals of Swachh Bharat.
FDI Policy: FDI up to 100% is allowed in the renewable energy sector under the Automatic route and no prior Government approval is needed.
Conservation of Resource
Ensuring the availability of resources is crucial, and conservation plays a key role in achieving this. The first step involves preserving water and protecting trees and forests. Opting for renewable sources such as solar and wind power, instead of relying on fossil fuels, is a wise and sustainable choice. It’s important to use resources in a controlled manner to prolong their availability. This not only benefits the present generation but also reserves some for the future. Emphasizing sustainable development is essential to strike a balance between meeting current needs and preserving resources for generations to come.