Model question | 21-07-2023

GS 3 Paper CSE 2022

Q11. “Economic growth in the recent past has been led by increase in labour productivity”.Explain this statement. Suggest the growth pattern that will lead to creation of more jobs without compromising labour productivity. (Answer in 250 words) 15 mark

Introduction:

The statement highlights the significant role played by increased labor productivity in driving economic growth in recent times. Labor productivity refers to the amount of output produced per unit of labor input. When labor productivity improves, it leads to more efficient use of resources and higher output, contributing to economic expansion. However, there is a concern that rapid technological advancements and automation might lead to job losses. To achieve sustainable economic growth, it is crucial to strike a balance between increasing labor productivity and creating more jobs, ensuring inclusive development.

Increased Labor Productivity Driving Economic Growth:

• Technological Advancements: The adoption of advanced technologies, automation, and digitization in industries has improved production processes, reducing costs, and increasing output per worker.

• Efficient Resource Utilization: Increased labor productivity ensures that resources are used more efficiently, resulting in higher output with the same or fewer inputs.

• Competitiveness: Industries with higher labor productivity can produce goods and services at competitive prices, enabling them to capture a larger market share and contribute to overall economic growth.

• Economic Output: Higher labor productivity leads to an increase in the Gross Domestic Product (GDP) of a country, reflecting the overall growth of the economy.

Growth Pattern for Job Creation without Compromising Labor Productivity:

• Investment in Skill Development: Governments and businesses should invest in enhancing the skills of the workforce through training and education programs. A skilled workforce is more adaptable to changing technologies and can take up higher-value tasks, contributing to productivity gains.

• Promotion of Research and Development: Encouraging innovation and research and development (R&D) activities will lead to the creation of new industries and job opportunities in emerging sectors.

• Diversification of Industries: Governments should promote a diverse range of industries, including labor-intensive sectors, to ensure a balanced employment pattern. This involves supporting both high-tech and traditional sectors to accommodate various skill levels.

• Entrepreneurship and Small Businesses: Encouraging entrepreneurship and supporting small and medium-sized enterprises (SMEs) can lead to job creation, as these businesses are often labor- intensive and have a substantial impact on employment.

• Investment in Infrastructure: Improving infrastructure, such as transportation and communication networks, attracts investments and boosts economic activities, leading to job creation in both construction and service sectors.

• Social Protection Programs: To manage the transition during periods of technological disruption, governments can implement social protection programs to provide support and retraining for displaced workers, ensuring their smooth reintegration into the workforce.

Examples of Successful Growth Patterns:

• Germany: Germany's "Mittelstand" model, consisting of a large number of small and medium-sized enterprises, has resulted in both high labor productivity and job creation. These companies often specialize in niche markets and employ a highly skilled workforce.

• South Korea: South Korea's focus on investing in education and research has led to the growth of a highly skilled workforce and a flourishing technology sector, contributing to both economic growth and job creation.

Conclusion:

Increased labor productivity has played a significant role in driving economic growth in recent years. However, to ensure sustainable and inclusive development, it is essential to adopt a growth pattern that creates more jobs without compromising labor productivity. By investing in skill development, promoting research and development, diversifying industries, supporting entrepreneurship, improving infrastructure, and implementing social protection programs, countries can strike a balance between productivity gains and job creation, fostering a more equitable and prosperous future.

Q12. Do you think India will meet 50 percent of its energy needs from renewable energy by 2030? Justify your answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above objective? Explain. (Answer in 250 words) 15 mark

Introduction:

India's ambitious goal of meeting 50 percent of its energy needs from renewable sources by 2030 reflects its commitment to sustainable development and combating climate change. However, achieving this target will require significant efforts and challenges.

Will India Meet 50 Percent Renewable Energy Target by 2030?

• Progress So Far: India has made significant strides in the renewable energy sector. As of 2021, the country's renewable energy capacity reached over 100 GW, accounting for approximately 24 percent of its total energy capacity. The government has implemented various policies and incentives to promote renewable energy investments and reduce carbon emissions.

• Challenges: Despite the progress, India faces challenges in achieving the 50 percent renewable energy target. Rapid industrialization, population growth, and rising energy demand pose challenges in balancing renewable energy adoption with fossil fuel-based sources. Additionally, financial constraints and grid integration issues need to be addressed to scale up renewable energy capacity.

• Government Commitment: The Indian government has demonstrated its commitment to renewable energy through initiatives like the International Solar Alliance and the Green Energy Corridors project. These efforts indicate the nation's determination to move towards a sustainable energy future.

Shift of Subsidies from Fossil Fuels to Renewables:

• Encouraging Investment: Redirecting subsidies from fossil fuels to renewables will make renewable energy projects more financially attractive for investors. Subsidies can lower the cost of renewable energy, encouraging private investments and accelerating the deployment of renewable technologies.

• Reducing Greenhouse Gas Emissions: Fossil fuel subsidies encourage their consumption, leading to higher greenhouse gas emissions. Shifting subsidies to renewables would discourage fossil fuel use, thereby reducing carbon emissions and combating climate change.

• Improving Energy Security: Investing in renewables can enhance India's energy security by diversifying its energy sources. Reducing dependency on imported fossil fuels will make the country less vulnerable to international price fluctuations.

• Creating Jobs and Economic Growth: The renewable energy sector has the potential to create numerous jobs, contributing to economic growth. A study by the International Labour Organization estimated that India could create around 4.5 million jobs by 2030 through renewable energy initiatives.

• Enhancing Energy Access: India has a significant population without access to electricity. Expanding renewable energy can improve energy access in remote and underserved areas, driving socio-economic development.

• Health Benefits: Fossil fuel combustion leads to air pollution, causing severe health issues. Shifting to renewables can improve air quality, leading to better public health outcomes and reducing healthcare costs.

Conclusion:

While achieving the target of meeting 50 percent of India's energy needs from renewable sources by 2030 is ambitious, it is feasible with the right policies and investments. India's commitment to renewable energy, demonstrated progress in the sector, and government initiatives indicate positive steps towards this goal. Shifting subsidies from fossil fuels to renewables is a crucial step to accelerate the transition. By encouraging investment, reducing emissions, enhancing energy security, creating jobs, improving energy access, and benefiting public health, this shift can drive India towards a sustainable energy future while meeting its renewable energy aspirations.