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Editorials/Opinions Analysis For UPSC 17 February 2024

  1. Agriculture Infrastructure Fund (AIF)- A Catalyst for India’s Agri-Future
  2. Skill Development: Key to India’s Shifting Job Market


Context:

India’s agricultural sector, a fundamental component of its economy, impacts the lives of over 55% of its populace. Despite ranking as the world’s second-largest agricultural producer after China, the sector has encountered challenges, particularly in managing post-harvest processes and ensuring market access. Acknowledging these issues, the Indian government initiated the Agriculture Infrastructure Fund (AIF) in July 2020 with the goal of transforming the sector through improved infrastructure, reduced losses, and the encouragement of innovation.

Relevance:

  • GS-1-Agricultural Resources
  • GS-2-Government Policies and Interventions
  • GS-3-E-Technology in the Aid of Farmers

Mains Question:

Highlighting the details of the Agriculture Infrastructure Fund (AIF), evaluate its performance in improving India’s agricultural sector. (10 Marks, 150 Words).

Agriculture Infrastructure Fund (AIF):

About:

  • The AIF scheme had clear and compelling objectives: mobilizing medium to long-term debt financing, enhancing farm gate infrastructure, reducing post-harvest losses, and fostering investment and innovation in agriculture and related sectors.
  • The AIF represented more than just an investment; it symbolized a commitment to change. Spanning from FY 2020-21 to FY 2025-26, the scheme aimed to provide targeted funding and disbursement, incorporating various financial support mechanisms such as a 3% interest subvention and credit guarantee coverage.
  • This approach created a fertile ground for growth and development. With an ambitious financial allocation of Rs. One Lakh Crore, the scheme offered interest subvention, credit guarantees, and the convergence of benefits, opening new opportunities for farmers, cooperatives, and agricultural entrepreneurs.

Success of the Agriculture Infrastructure Fund (AIF):

  • As the wheels of the AIF were set in motion, India’s agricultural landscape underwent a remarkable transformation. By February 15th, 2024, the fund had allocated Rs. 37,653 Crore for 52,671 projects and disbursed Rs. 23,000 Crores, mobilizing a total investment of Rs. 63,580 Crore in the sector.
  • Sprouting across diverse regions, from the fertile fields of Punjab to the vibrant farms of Tamil Nadu, a multitude of projects emerged, including custom hiring centers, warehouses, and cold storage facilities, each exemplifying the nation’s dedication to revitalizing agriculture.
  • The AIF played a pivotal role in establishing 51,248 post-harvest and community farming assets, comprising 11,434 Custom Hiring Centers, 11,284 Warehouses, and 1,549 Cold Store projects.
  • This infrastructure development significantly contributed to the reduction of post-harvest losses and improved market access for farmers, leading to an estimated annual savings of 11 LMT of food grains and a decrease of 2.7 LMT in post-harvest losses of horticulture produce.
  • Additionally, it is projected that farmers can command 11-14% higher prices for their produce, thanks to the infrastructure created by AIF.
  • Equipped with improved infrastructure, farmers witnessed their produce fetching higher prices, resulting in increased incomes akin to the swelling monsoon rivers.
  • The creation of over 5.1 lakh employment opportunities heralded a season of prosperity, sowing the seeds for over 24,000 agri-entrepreneurs.
  • The AIF portal facilitated the integration of approximately 0.99 lakh bank branches and attracted 1.27 lakh registered applicants, standing as a unified platform for beneficiaries, lending institutions, and other crucial stakeholders involved in the scheme.

The Other Side of the Coin:

  • The Agriculture Infrastructure Fund (AIF), has disbursed only 15% of its Rs 1 lakh crore target within the initial three years.
  • On August 1, 2023, the Union Agriculture minister informed Parliament that Rs 15,448 crore had been sanctioned for 27,748 AIF projects, with 19,650 projects worth Rs 9,660 crore (9.66% of the total allocation) completed.
  • The utilization pattern revealed Madhya Pradesh as the leading state, followed by Maharashtra and Uttar Pradesh.

Several potential reasons underlie the low utilization of the AIF scheme:

Lack of awareness and outreach:

  • Many farmers, FPOs, and agri-entrepreneurs remain uninformed about the scheme and its advantages, or they lack knowledge on the application process.
  • The report recommends intensifying efforts to raise awareness through various channels like media, social platforms, webinars, workshops, and training programs.

Lack of bankable projects:

  • Numerous potential beneficiaries struggle to develop viable project proposals meeting the eligibility criteria and technical standards.
  • The report suggests providing more guidance and support to help them formulate feasible and high-quality project proposals that can attract funding from banks and financial institutions.

Lack of coordination and convergence:

  • Insufficient coordination among various stakeholders, including central and state governments, banks, financial institutions, implementing agencies, nodal departments, monitoring committees, and beneficiaries, hampers the scheme’s effectiveness.
  • The report recommends establishing more regular meetings, reviews, and feedback mechanisms to ensure smooth implementation and monitoring.

Lack of infrastructure and logistics:

  • Many rural areas face inadequate infrastructure and logistics facilities, such as roads, electricity, water supply, storage, processing, and marketing, essential for developing post-harvest infrastructure and community farming assets.
  • The report suggests increased investment and support to enhance rural infrastructure and logistics networks.

Conclusion:

The AIF’s legacy, characterized by improved infrastructure, reduced losses, and empowered farmers, envisions a future where agriculture in India transcends mere survival to become a thriving, vibrant sector. In this future, as the sun rises over the fields, it illuminates a transformed land—a testament to the enduring spirit of India and its farmers, nurtured by the waters of the Agriculture Infrastructure Fund.



Context:

In today’s swiftly changing job market, the development of skills takes on significant importance. The job landscape is in a constant state of flux due to technological advancements, economic shifts, and changing client preferences. To thrive in this dynamic environment, individuals must be adaptable and cultivate new abilities.

Relevance:

GS-2

  • Human Resource
  • Government Policies and Interventions

GS-3

  • Skill Development
  • Growth and Development

Mains Question:

Skill-based education is paramount to bridging the gap between potential and realisation in a job market increasingly favouring specialised technical skills. Analyse. (15 Marks, 250 Words).

Necessity of Skill Development:

  • The future of work will not solely hinge on hard skills but will also encompass a broader range of holistic skills.
  • With over 808 million young workers below the age of 35, India must seriously consider the connection between skills and employability, the divide between potential and realization, and the interplay of ambition and support.
  • The current deficiency, with only 5% formally skilled and a predominant focus on formal learning, leaves graduates ill-equipped for the fiercely competitive job market.
  • Hence, the imperative shift toward holistic skill-based education, as delineated in the National Education Policy 2020.
  • The primary objective of skill development is to boost sustainable employability, transition unskilled workers into formal employment, and enhance job quality and livelihoods.
  • The evolving job market necessitates skills that align with business productivity. The upcoming job landscape in India calls for a combination of advanced technical skills and softer, transferable skills.
  • As per a World Economic Forum report, it is projected that by 2027, 69 million new jobs will be generated, while 83 million will be phased out. The era dominated by generalists is making way for a period characterized by specialists.

Technology and Job Market:

  • The coming years are expected to witness a substantial demand for professionals in fields such as Artificial Intelligence (AI), sustainability, business intelligence analysis, and information security.
  • In the current intensely competitive job market, numerous opportunities still exist for individuals possessing the right skill sets.
  • To maintain a competitive edge, even traditional skill-oriented industries are actively seeking expertise in AI and automation.
  • The landscape of professions is undergoing a transformation due to automation and artificial intelligence, leading to the obsolescence of certain roles and the emergence of new prospects in expanding industries.
  • With machines taking over repetitive tasks, there is a growing need for specialized technical skills.
  • Currently, job creation is prominently driven by fields like data science, artificial intelligence, robotics, and machine learning. Consequently, job seekers must possess a distinct set of skills to remain competitive.
  • In today’s context, proficiency in technology and digital literacy is indispensable for most job roles.
  • Competence in programming languages, data analysis, cloud computing, and cybersecurity is critical, as businesses reliant on data must safeguard their information from cyber threats.
  • Furthermore, in this era of digital advancement, soft skills are more crucial than ever before.
  • Effective communication, problem-solving, creativity, and critical thinking are all indispensable for navigating the challenges of an automated world successfully.
  • Individuals who can seamlessly combine technical skills with these soft skills will enjoy a significant advantage in today’s competitive job market.

Lifelong Learning:

  • With over 54% of India’s workforce needing reskilling, traditional jobs in manufacturing, administration, and retail are rendered obsolete due to automation, and workers in these fields must reskill to discover new opportunities.
  • Upskilling, on the other hand, involves enhancing existing abilities to meet the evolving needs of a job function, making it more effective and reliable.
  • Lifelong learning is a necessity for adapting to the ever-evolving job market. It is crucial to recognize that learning should extend beyond formal education, holding greater significance than ever before.
  • Moreover, businesses highly value individuals who can embrace change and actively seek new learning opportunities.
  • Adopting a mindset of constant improvement is a valuable asset in a job market that values adaptability and creativity. Additionally, lifelong learning can significantly enhance an individual’s job satisfaction and overall well-being.
  • It is the prime responsibility of individuals to take charge of their skill development and consistently adapt to the changing landscape of today’s job market.
  • As India approaches a transformative phase, it becomes crucial to reconsider education and prioritize on-the-job training.
  • Embracing apprenticeships can mold a workforce not only well-versed in theoretical knowledge but also possessing practical tech-based skills, essential for gaining a competitive edge and flourishing in the dynamic economic landscape.
  • Lifelong learning is paramount in adjusting to the evolving job market, where adaptability and creativity are highly prized.
  • The future of work necessitates a combination of technical proficiency and soft skills, emphasizing the importance of continuous self-improvement and adaptation.

Conclusion:

As India stands on the cusp of a transformative era, it is imperative to reconsider educational approaches, prioritize on-the-job training, and embrace apprenticeships to cultivate a workforce that not only harbors theoretical knowledge but also possesses the practical tech-based skills required to thrive in the competitive and dynamic landscape of the country’s economy.


November 2024
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