India's Economic Resilience and Energy Security: A Blueprint for a Viksit Bharat
UPSC Relevance
Prelims: Indian Economy (GDP, Poverty, Energy Sector, Fiscal Policy, Key Government Schemes); Science & Technology (Semiconductor Mission); International Relations.
Mains:
General Studies Paper 2: Government policies and interventions for development in various sectors; Effect of policies and politics of other countries on India’s interests.
General Studies Paper 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment; Inclusive growth; Infrastructure: Energy; Investment models.
Essay: Topics on Viksit Bharat, India's economic growth, Energy Security, and Inclusive Development.
Key Highlights from the News
India's GDP growth reached a high of 7.8% in the first quarter of the 2025-26 fiscal year, indicating the country's economic resilience.
Strong performance in sectors like Manufacturing, Construction, and Services contributed to this growth.
S&P Global, an international rating agency, upgraded India's sovereign rating after 18 years, a significant recognition of the country's financial stability.
24.82 crore Indians escaping multidimensional poverty between 2013 and 2023 indicates inclusive growth.
Energy security has become a crucial pillar of India's economic growth.
India's oil imports from Russia adhered to the G-7 price cap, not violating international laws. The article argues this helped control global oil prices from increasing.
Schemes like Production Linked Incentives (PLI), PM Gati Shakti, and India Semiconductor Mission have initiated a new industrial revolution in the country.
The article states that India's growth model is democratic and inclusive, describing it as a "marathoner's economy".
Detailed Explanation: Key Concepts and Schemes
GDP vs. GVA:
GDP (Gross Domestic Product): The total monetary value of all final goods and services produced within a country over a specified period. It reflects the demand side.
GVA (Gross Value Added): The measure of value added by each producing sector (agriculture, industry, services). It reflects the supply side.
Multidimensional Poverty Index (MPI):
This is an index that measures poverty not just based on income, but also takes into account deprivations in health, education, and living standards.
Energy Security:
This is the state where a country has uninterrupted and affordable access to energy to meet its needs. It is essential for a country's economic growth and national security.
G-7/EU Price Cap on Russian Oil:
This is a mechanism imposed by G-7 countries and the European Union to reduce Russia's oil revenue in the context of the Ukraine war.
According to this, companies from these countries can provide shipping, insurance, and other services only if Russian oil is sold below a certain price. It does not completely ban Russian oil, but controls its price.
Production Linked Incentives (PLI) Scheme:
This scheme aims to promote domestic manufacturing and reduce imports in selected key sectors. The government provides incentives to companies for increased sales of products manufactured in India.
PM Gati Shakti:
This is a national master plan that brings together various ministries for integrated planning and coordinated implementation of infrastructure development projects. It aims to reduce logistics costs in the country.
Open Acreage Licensing Policy (OALP):
This is a policy for hydrocarbon exploration. According to this, companies can choose blocks of interest themselves and request the government for exploration..
Mains Only Notes
This article presents an optimistic view of the Indian economy.
Despite global uncertainties, India's economic growth, inclusive development, pragmatic energy policy, and emphasis on domestic manufacturing are presented as part of an integrated strategy.
This can be seen as a blueprint for achieving the goal of 'Viksit Bharat'.
Pillars of India's Growth Story & Challenges:
Pillars:
Resilient Economic Growth: High GDP growth, strong manufacturing and service sectors.
Inclusive Development: Poverty eradication, provision of basic facilities to all.
Pragmatic Energy Security: Meeting the country's energy needs and stabilizing the global market through Russian oil imports.
'Made in India' for the World (New Industrial Revolution): Promoting domestic manufacturing through PLI, Gati Shakti, Semiconductor Mission.
Digital Transformation: UPI and the startup ecosystem accelerate economic growth.
Challenges:
Although the article is optimistic, a UPSC note requires a balanced perspective.
Jobless Growth?: The question remains whether high GDP growth is creating enough quality employment opportunities.
Inequality: There is criticism that the benefits of growth are not reaching everyone equally.
Environmental Concerns: Reliance on fossil fuels for energy security poses a challenge to India's climate goals.
Fiscal Prudence: Concern about how large spending on welfare schemes and subsidies will affect the country's fiscal health.
Balanced View: India's recent economic growth and achievements in poverty eradication are commendable.
Government-led capital expenditure and pragmatic policies to ensure energy security have laid the foundation for this growth.
However, it is necessary to ensure that this growth reaches everyone. More attention needs to be focused on creating employment opportunities, reducing income inequality, and ensuring environmental sustainability.
To achieve the goal of 'Viksit Bharat', significant progress in human development indicators is essential, along with a high growth rate.
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