UPSC Daily Current Affairs | Prelim Bits 08-08-2024

Raising and Accelerating MSME Performance (RAMP) Scheme

Recently, the Raising and Accelerating MSME Performance (RAMP) scheme was in the news.

• Aim- It aims to enhance MSME capacity and coverage by fostering innovation, improving processes, enhancing market access, promoting greening initiatives, and supporting women-owned enterprises.
• Nodal agency- Ministry of Micro, Small and Medium Enterprises.
• Launched in - 2022.
• Duration- 5 years (2021-22 to 2025-26).
• Participant states- All States and UTs, except Delhi, have shown interest in participating in RAMP.
• Funding- It is a World Bank-supported Central Sector Scheme.
• Eligibility- The MSME should be registered under the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006.
• The MSME should have a valid Udyog Aadhaar Number (UAN).
• Objectives-
  • Accelerating Centre- State collaboration in MSME promotion and development.
  • Enhancing effectiveness of existing MoMSME schemes for technology upgradation.
  • Strengthening Receivable Financing Market for MSMEs and enhancing effectiveness of Credit Guarantee Trust for Micro & Small Enterprises (CGTMSE), and promoting guarantee for greening initiatives of MSEs, and women owned MSEs.
  • Reducing incidence of delayed payments to MSEs

References

1. PIB | RAMP scheme
2. INVEST India | RAMP scheme

Rural Youth Employment Report, 2024

The ‘State of Rural Youth Employment Report 2024’ was released recently.

• Released by - Development Intelligence Unit, a joint initiative by Transform Rural India and Sambodhi Research, and the Global Development Incubator.
• For the report 5169 rural ‘Opportunity Youth’ from 21 states across India between 18-35 years of age were interviewed.

Opportunity Youth are youth who are active and inactive, unemployed, underemployed, and out of school/education / skilling.

Key Findings of the report

• Age group - Among the respondents, 26.6% were aged between 18-25 years and the remaining 73.4% were aged between 26-35 years.
• Working population
  • Male - Of these, just over half of the male respondents aged 18-25 years were currently working.
  • Among older male youth aged between 26-35 years, nearly 85% said they were engaged in paid work, and nearly 10% said they used to work but were currently unemployed.
  • Female - In contrast, only a fourth of female respondents in the same age group said they were currently engaged in paid work.
  • By contrast, among female youth in the same age group only 40% said they were currently working, a fourth reported having dropped out of the workforce, and a third reported never having worked for pay.
• According to the Directorate General of Labour, Ministry of Labour and Employment 32.8% females aged 15 years and above in India are participating in the labor force, as compared to 77.2% males.
• The Female Labour Force Participation Rate (LFPR) in the age group 15-59 years is 35.6%, as compared to 81.8% male.
• Primary sources of income- Nearly half of rural youth rely on agriculture, followed by wage labor and retail trade.
• Higher Job dissatisfaction - A significant majority between 70-85% of currently employed rural youth are looking to change their jobs.
• Preferred employment types - Many youths prefer small businesses (manufacturing, retail, trading) or salaried jobs in public and private sectors.
• Salaried jobs across the public and private sectors were the clear second preference, with teaching, clerical work, and working in a factory being top job preferences across gender and age group.
• Younger male youth prefer government or private sector jobs, and women prefer government jobs.
• Support needs- For starting businesses, 90% of male and 50% of female respondents need support accessing seed capital, and 10% need full training courses.
• Location preferences- Over 60% of male and 70% of female respondents prefer to work in or near their villages, even at lower incomes.
• Employment rates- Higher employment rates for males compared to females in both the 18-25 and 26-35 age brackets.

References

1. The Indian Express | Rural Youth Employment report 2024
2. Financial Express | Rural Youth Employment report 2024

Self-Reliance in P&K fertilizer

Recently, the government has been committed to making the country self-reliant in the production of Phosphorus and Potassium (P&K) fertilizers and is taking several steps towards this goal.

• Components- Potash (K) and phosphate (P) are essential for increasing the production of foodgrains and other agricultural products, along with nitrogen (N).   
• Ideal ratio- A NPK ratio of 4:2:1 is considered ideal and accepted for macro-level monitoring of plant nutrient consumption for the country.
• Decontrol of P&K Fertilizers in 1992- It allowed market forces to dictate prices.

The PV Narasimha Rao government removed subsidies on non-urea fertilizers (P and K) but retained control and subsidy on urea.

• Production- Currently, India's fertilizer production is 42-45 million tonnes while imports are around 18 million tonnes.  
• Imports- During 2021-22, the total value of fertilizer imports, inclusive of inputs used in domestic production, was 24.3 billion dollars.
• Current status on Imports of India
  • Potash (K) - Depends entirely on imports coming mostly from Belarus, Canada, Russia, Israel, and Jordan.
  • Import - Import dependence is almost 80%-90%, with imports coming mainly from China, Saudi, Morocco, Jordan and Egypt.
• Auctioning of blocks- The government has enacted laws to auction critical mineral blocks like potash and phosphate for exploration and processing in India.   

Government Steps for Self-Reliance in Fertilizer Production

• Permissions granted to fertilizer companies to increase manufacturing capacity under Nutrient Based Subsidy (NBS).
• The policy provides a fixed subsidy on each grade of subsidized P&K fertilizers based on nutrient content.  
• New Investment Policy (NIP) to facilitate fresh investments and set up 6 new urea units.
• Promotion of Organic Fertilizers under the GOBARdhan initiative.
• The use of liquid nano DAP (diammonium phosphate) and nano urea is being promoted to reduce imports.  

References

1. PIB | Self-Reliance in P&K fertilizer
2. Deccan Herald | Self-reliance in fertilizers

Homo floresiensis

New clues emerge on the evolutionary origins of extinct hobbits that once lived on Indonesia’s Flores island.

• Homo floresiensis - It is an extinct species of small archaic human that inhabited the Island of Flores, Indonesia.
• They are also called Flores men or the ‘hobbits’ of Indonesia’s Flores island.
• Homo floresiensis fossils were first discovered in 2003.
• Characteristics - They were about 100 centimetres (3 feet 6 inches tall) tall and 30 Kg weight.

• Body Size - Body size had reduced from large-bodied Asian Homo erectus sometime between 1 and 0.7 million years ago due to island dwarfism.

Island dwarfism is an evolutionary process that results from long-term isolation on a small island with limited food resources and a lack of predators.

• Appearance - Tiny brains, large teeth for their small size, shrugged-forward shoulders, no chins, receding foreheads, and relatively large feet due to their short legs.
• Tools - Made and used stone tools and may have used fire.
• Hunting - Hunted small elephants and large rodents, and coped with predators such as giant Komodo dragons.
• Recent findings - Discovery of 3 hominin fossils dating to 700,000 years from Mata Menge in central Flores.
• Most of the Homo floresiensis fossils are found at Liang Bua cave in Indonesia.
• Theories of their origin
  • Theory 1 - Homo floresiensis was a dwarfed descendant of early Asian Homo erectus.
  • Homo erectus, extinct species may have lived between 100,000 and 1.6 million years ago.
  • Theory 2 - Homo floresiensis is a descendant of a more ancient hominin from Africa like Homo habilis or the famous ‘Lucy’ (Australopithecus afarensis).

References

1. DownToEarth | New clues on Homo floresiensis
2. Smithsonian | Homo floresiensis

Waqf board

The recently introduced Waqf (Amendment) Bill governing Waqf boards has proposed far-reaching changes, ensuring the representation of Muslim women and non-Muslims in such bodies.

Waqf

• Under the Waqf Act of 1954, a Waqf refers to a property dedicated in the name of God for religious and charitable purposes.
• Legally, it is the permanent dedication by a Muslim of any movable or immovable property for purposes recognized by Muslim law as pious, religious, or charitable.
• A Waqf can be established through a deed or instrument, or a property can be considered a Waqf if it has been used for religious or charitable purposes over a long period.
• The proceeds from Waqf typically fund educational institutions, graveyards, mosques, and shelter homes.
• Once a property is designated as a Waqf, it becomes non-transferable and is detained perpetually as a charitable act toward God, essentially transferring ownership to God.
• Waqfs can be either public, serving charitable ends, or private, benefiting the property owner’s direct descendants.
• To create a Waqf, one must be of sound mind and hold valid ownership of the property.
• Interestingly, the creator of a Waqf, known as the Waqif, does not have to be a Muslim, as long as they profess belief in Islamic principles.

Waqf board

• A Waqf board is a legal entity capable of acquiring, holding, and transferring property.
• It can sue and be sued in court.
• Members - Each state has a Waqf Board led by a chairperson, including

o Nominees from the state government,

o Muslim legislators,

o Parliamentarians,

o Members of the state bar council,

o Islamic scholars,

o And mutawalis (managers) of waqfs with an annual income of rs 1 Administration - lakh and above.

• The Waqf Board administers Waqf properties, recovers lost properties, and sanctions the transfer of immovable Waqf properties through sale, gift, mortgage, exchange, or lease.
• Voting - At least two-thirds of the board members voting in favour of the transaction.
• The board appoints custodians to ensure the Waqf and its revenue are used for their designated purposes.
• Central Waaf Council (CWC) - The Central Waqf Council (CWC), established in 1964, oversees and advises state-level Waqf Boards across India.

References

1. The Print | The Waqf (Amendment) Bill
2. Business Standard | What is a Waqf?