31 July 2023

MAINS DAILY QUESTIONS & MODEL ANSWERS

Q1. What steps may be done to ensure that increased capital spending in the budget contributes to long-term, sustainable, and inclusive economic growth while avoiding undesirable repercussions such as inflation or fiscal imbalance? Analyse.

GS III – Indian Economy

• Long-term sustainable and equitable economic growth requires budgetary measures such as investing in green infrastructure projects, clean energy, capital expenditure on education, and sustainable agriculture.

The following budgetary strategies may be implemented to increase capital investment for long-term development and economic growth:

• Government spending on infrastructure initiatives that encourage economic growth, such as transportation, electricity, and water systems, should be increased.
• Encouraging private investment in projects that contribute to sustainable development through tax breaks or other subsidies.
• Putting measures in place to encourage the use of clean energy and reduce carbon emissions.
• Investing in education and training programmes that improve human capital and productivity.
• Encouraging innovative technology research and development to enable long-term growth.
• Reducing wasteful spending and prioritising investments with long-term advantages.
• Investing in renewable energy entails allocating funding towards the development of clean and sustainable energy sources such as solar, wind, and hydroelectricity.
• Promoting energy efficiency by offering incentives for the use of energy-efficient technologies in homes and companies, as well as investing in public transit networks.
• Supporting green infrastructure entails allocating funds for the construction of long-term infrastructure such as green buildings, parks, and bike lanes.
• Investing in sustainable farming practises and giving incentives for the use of organic farming techniques are two ways to promote sustainable agriculture.
• Implementing a carbon tax: A carbon tax can motivate enterprises to minimise their carbon footprint and promote the adoption of sustainable practises.
• Investing in education and research: Research and development of new sustainable technologies, as well as public education about the importance of sustainability, can assist generate long-term sustainable growth.

The following actions may be done to avert inflation and fiscal imbalance while pursuing sustainable development and economic growth:

• Implementing incremental changes: Implementing policies and investments gradually over time might help avoid unexpected economic shocks and lower the danger of inflation.
• Prioritising efficiency: Investing in sustainable technologies and practises that improve efficiency can result in cost savings and help lessen the risk of inflation.
• Putting an emphasis on public-private partnerships: Collaboration with the private sector may assist share the costs and risks of sustainable development projects, decreasing the strain on the government budget.
• Fiscal discipline: Keeping a balanced budget and minimising government debt can assist maintain economic stability and lower the danger of inflation.
• Conducting a detailed cost-benefit analysis prior to implementing any policies or investments can assist ensure that the benefits of the policy outweigh the costs and limit the danger of fiscal imbalance.
• How to minimise inflation and fiscal imbalances while pursuing sustainable development and economic growth
• Implementing development initiatives gradually and carefully to avoid abrupt surges in demand for products and services, which can contribute to inflationary pressures.
• Implementing effective monetary policy measures to limit inflationary pressures, such as hiking interest rates.
• To maintain a balanced budget and minimise fiscal imbalance, efficient fiscal policy measures such as lowering wasteful government spending and boosting tax collection must be implemented.
• Promoting international commerce and investment in order to expand the supply of goods and services, which can aid in the reduction of inflationary pressures.
• Encouraging private sector investment in sustainable development projects, which can lessen the load on government budgets and avert fiscal imbalance.

Conclusion:

• A cautious approach, a focus on efficiency and collaboration, and a commitment to fiscal discipline are required to achieve long-term Eco growth without negative consequences. Ensuring that sustainable development projects are implemented in a way that does not negatively impact the environment or the social fabric of communities, which can lead to long-term economic stability and growth.

Q2. What are the implications for national security and geopolitical stability of expanding Chinese monitoring operations using spy balloons? What steps can India take to address such threats in the future? Discuss.

GS III – Internal Security

• According to reports, China has been conducting surveillance operations using high-altitude spy balloons. These balloons are outfitted with cameras and other sensors that can take images and collect data from a broad range of locations, including military bases and other sensitive areas.

The ramifications for national security and geopolitical stability of growing Chinese surveillance operations using spy balloons are enormous. Some possible consequences include:

• National security risk: China’s deployment of spy balloons for monitoring activities raises concerns about potential national security risks. China might utilise this technology to acquire intelligence on military installations, crucial infrastructure, and other sensitive locations, jeopardising national security.
• Tensions with neighbouring countries: The use of spy balloons for surveillance may raise tensions with neighbouring countries, especially if China uses them to monitor activity in disputed areas or near other countries’ borders. This might heighten geopolitical tensions and instability.
• Concerns concerning privacy and human rights: The use of spy balloons for monitoring creates privacy and human rights concerns. These balloons’ data could be used to follow the movements of individuals and groups, potentially resulting in abuses of privacy and civil freedoms.
• Impact on global norms: China’s increased use of surveillance technology, particularly spy balloons, may have a broader impact on worldwide privacy and surveillance rules. If other governments follow China’s lead and begin adopting similar technology, a race to the bottom could ensue, with countries increasingly dependent on surveillance technologies to keep control over their citizens.

India could take the following steps to counter Chinese spying operations using spy balloons:

• Strengthening Air Defence: By boosting the number of radar and detection systems along its borders, India might improve its air defence capabilities. This will allow India to detect and track Chinese spy balloons in its skies.
• Counter-surveillance capabilities: India might develop its own counter-surveillance capabilities, such as deploying drones or balloons fitted with sensors to detect and track Chinese spy balloons.
• Diplomatic Efforts: India might work with other countries to raise awareness about the possible threat posed by Chinese monitoring operations using spy balloons. This might contribute to the formation of a global coalition against China’s use of such technology.
• Increasing Cyber Security skills: To resist Chinese cyber espionage and cyber attacks, India might focus on improving its cyber security skills. This might include actions like increasing encryption standards and protecting crucial infrastructure.

Conclusion:

• Finally, China’s increased use of spy balloons for surveillance operations has serious ramifications for national security and geopolitical stability. The international community must address these concerns and ensure that the use of such technology is governed by suitable legislative frameworks that protect fundamental human rights and civil liberties.