Editorials/Opinions Analysis For UPSC 13 February 2025
Content: Budgeting for a gender-inclusive ‘Viksit Bharat’ Averting Engels’ pause Budgeting for a gender-inclusive ‘Viksit Bharat’ Context: The Union Budget 2025-26 underscores inclusive development, prioritizing the poor, youth, farmers, and women. The explicit focus on women aligns with the government’s commitment to women-led development. Relevance : GS 2(Governance) Practice Question: Gender-responsive budgeting is essential for achieving inclusive economic growth. Discuss the key provisions in the Union Budget 2025-26 aimed at enhancing women’s participation in economic activities. What challenges remain, and how can they be addressed? (250 words) Gender Budget Allocation – Highest in Two Decades Gender budget increased to 8.8% of total Budget (₹4.49 lakh crore), up from 6.8% in the previous year. 49 Union Ministries and departments now have gender budget components. 12 additional Ministries from non-traditional sectors (e.g., Railways, Ports, Land Resources, Pharmaceuticals) have integrated gender budgeting. A whole-of-government approach reflects enhanced gender mainstreaming in policies. Boosting Female Labour Force Participation Rate (FLFPR) FLFPR (usual status) increased to ~42% in 2023-24 (from 33% in 2021-22), nearing the global average of 47%. However, a 37-percentage point gap exists compared to men’s FLFPR (79%). Achieving the 70% target by 2047 requires: Investment in skilling, employment, and entrepreneurship Access to productive resources and social security Key Budget Allocations for Women in Economic Activities: Skill India Programme, ESDP, National Skill Training Institutes, DAY-NRLM, MGNREGS, PM Employment Generation Programme, PM Vishwakarma, Krishonnati Yojana Combined allocation increased from ₹1.19 lakh crore to ₹1.24 lakh crore, with 52% of funds directed towards women and girls. New schemes: PM Dhan-Dhaanya Krishi Yojana First-time entrepreneurs’ scheme Sustainable livelihood for urban workers Centres of Excellence for ‘Make in India’ Formalizing Women in the Gig Economy 90% of India’s working women are in the informal sector. Budget proposes: Identity cards for gig workers Registration on the e-Shram portal Potential benefits: Formal identity and recognition Access to social security and financial inclusion Challenges in the gig economy: Low wages, job insecurity, lack of employment rights Need for comprehensive social security measures, including maternity benefits Labour code enforcement and progressive parental entitlements are crucial for economic security. AI & Digital Skilling for Women Centre of Excellence on Artificial Intelligence (AI) for the education sector introduced. ₹600 crore allocated under India AI Mission for gender-focused AI initiatives. Importance of AI and digital skilling: Bridging the digital divide Enhancing women’s employability in high-growth sectors Strengthening Women’s Financial Inclusion & Entrepreneurship Women play key roles in agriculture, entrepreneurship, and employment, requiring better financial support mechanisms. Key Budget Provisions: Simplifying loan documentation (e.g., delinking Kisan Credit Cards from land ownership). Gender-disaggregated tracking of financial access to enhance efficiency. Supporting women entrepreneurs via collateral-free loans, alternative credit scoring, and financial literacy programs. Potential impact: Women-owned MSMEs (20.5% of total MSMEs) employ ~27 million people. 30 million additional women-led businesses could generate 150-170 million jobs by 2030. Gender-Responsive Budgeting – Key to Inclusive Growth Budget 2025-26 lays a strong foundation for women’s economic participation. Key measures for realizing Viksit Bharat: Sustained policy implementation Infrastructure development Transforming social norms Gender-responsive budgeting ensures: Strengthened social protection An inclusive labour market for both women and men Women as key drivers of national growth Conclusion: Achieving 70% women’s participation in economic activities by 2047 requires sustained investment, social security, and structural reforms. Gender-sensitive policies and financial inclusion will be crucial for women-led economic transformation in India’s journey towards Viksit Bharat. Averting Engels’ pause AI Governance and Global Commitments Prime Minister Narendra Modi emphasized the need for AI governance, standards, and trust-building at the AI Action Summit in Paris (Feb 11, 2025). India, along with over 50 countries, committed to principles of trust, safety, and universal access in AI development. The focus on mitigating AI risks while advancing technology aligns with India’s long-term AI strategy. Relevance : GS 3(Technology), GS 2(Governance) Practice Question : Discuss the concept of Engels’ Pause in the context of Artificial Intelligence (AI)-driven economic transformations. How can India mitigate the risks associated with job losses and wage stagnation while ensuring sustainable AI adoption? (250 words) Labour Market Challenges and Engels’ Pause Engels’ Pause: A phase where technological advances benefit firms, but real wages stagnate before eventual trickle-down effects. Historical perspective: PM Modi highlighted how past technological revolutions created new employment opportunities. The Economic Survey acknowledges concerns that AI-driven productivity gains could initially disrupt labour markets. India’s IT and services sector contributes significantly to GDP but employs a smaller workforce—AI efficiency gains could reduce job creation and stagnate wages. Proactive policy responses are essential to ensure AI adoption does not exacerbate job losses. Energy Sustainability and AI’s Rising Power Demand AI’s energy footprint is increasing due to high computational power required for model training and deployment. The U.S. produces over twice India’s electricity with a quarter of its population—data centres are becoming major consumers. India must focus on renewable energy-driven AI expansion to ensure sustainability. India’s AI Strategy and Future Path Unlike Western AI firms pursuing a high-investment, low-return model, India must focus on cost-effective AI tailored to national needs. The IndiaAI Mission promotes AI research through: Subsidised GPU clusters for AI model training. Funding for promising AI projects to foster innovation. Skilling and education: Scaling up AI training programs to ensure a strong domestic talent pool. Addressing the brain drain by ensuring India retains top AI expertise. Way Forward AI’s impact on labour markets and wages must be monitored and managed through policy interventions. Energy-efficient AI adoption is critical for India’s sustainability goals. Developing indigenous AI capabilities will ensure economic competitiveness and reduced dependence on foreign technologies. A balanced AI strategy can help India avert Engels’ Pause and harness AI for inclusive economic growth.