Daily PIB Analysis For UPSC/IAS | 16th &17th November 2018

Table of Contents

Service revolution

First Industrial Revolution: steam power to mechanize production
Second Industrial Revolution: electric power to create mass production
Third Industrial Revolution: used electronics to automate production
Fourth Industrial Revolution: digital revolution

Five decades of rising capabilities and falling costs in digital communication have resulted in global service revolution.
Developed economies: 70% of gross domestic product (GDP)
comes from SERVICES and not from MANUFACTURING.
Services also contribute to the bulk of GDP in developing countries.
Young workers who leave the farm for the cities are increasingly absorbed into urban services jobs instead of manufacturing.
India’s growth has been spearheaded by rapid growth in services than manufacturing.
Trade in services has grown at a much faster pace than trade in goods.
Labour productivity growth in services is above that in industry,
and productivity growth in services in India matches labour productivity growth in manufacturing sectors in China.
The Fourth Industrial Revolution has also resulted in new forms of
globalization that is benefitting late comers to development.
Will new technology result in job losses for millions?
These challenges can be managed by investing more in human capital
stock, innovating the way we educate, start building buffers for
India’s demographic dividend, and better manage sources of
inequality, gender discrimination, and in machine learning.
Everybody will need to work together productively, to grasp the benefits, and manage the risks.
In the UK and US, investments in human capital have already
surpassed investments in physical infrastructure.
Digital technologies open new avenues of sustainable, inclusive, and smart development.
The fear of premature deindustrialization
in India is well placed.
Many more jobs will be redefined in terms of the tasks they do, and
large numbers of new jobs will be created that will require different skills, technological know-how, problem solving, and criticalthinking skills, as well as collaboration and empathy.
India has one of the youngest populations in the world that is
eager to learn.
By 2020, the median age in India will be just 28, compared to 37 in China and the US, 45 in Western Europe, and 49 in Japan.
India’s young population will increase economic growth through many channels.
There are at least three times as many connected devices in the world today as there are people.
New digital platforms are already bringing connecting people to markets, connecting small and medium enterprises (SMEs) to global trade, and promoting gender revolution.
Investing in human capital will be the
magic wand that will prevent India from facing a demographic curse.
India’s biggest asset is its young population.
Policy makers need to scale up emphasis on sound infrastructure
delivery plan, both physical and human infrastructure investments, but increase the importance of investment in human capital stock.

Vice President’s Secretariat

India is witnessing an urban renaissance and has been set in motion.
He was interacting with the Mayor of Houston, USA, Mr. SylvesterTurner, who calledon the Vice President along with a high leveltrade and investment delegation including counselors, city planners, urban development officers and members of the Indo American Business Chamber in Mumbai.
The Vice President said that Government’s initiatives such as Smart Cities, AMRUT Mission, Housing for all are changing the
urban landscape by providing amenities to common man at an affordable price.
The Vice President said that as 70% of our urban population are residing in 500 cities and towns a comprehensive five year action plans for addressing infrastructure deficit in a focused
manner are being prepared for the first time to have an affordable and
sustainable urban infrastructure that is inclusive in nature.
The Vice President said that 100 such Smart Cities are being built now in India that would act as lighthouses to inspire, motivate and encourage others to build more Smart Cities.

Prime Minister’s Office

I am delighted to visit Malé, the capital of the Republic of Maldives, our close and friendly neighbour, to attend the historic Inauguration Ceremony of President-elect H.E. Ibrahim
Mohamed Solih. I warmly congratulate him on his victory in the recent elections. It represents the collective aspirations of the people of the Republic of Maldives for democracy, rule of law and a prosperous future.

Ministry of Commerce & Industry

9th Session of the India-Kyrgyz InterGovernmental Commission on Trade, Economic, Scientific and Technological Cooperation (IK-IGC) was held.
Areas: healthcare and pharmaceutical, environmental and technical safety, agriculture, information, tourism and culture, textiles and clothing, banking, labor and socialm development, mines and standards, metrology and certification sector

Ministry of Finance

Government of India and the Asian Development Bank (Adb) Sign $ 169 Million Loan to Provide Water and Sanitation Services in Tamil Nadu
Government of India and the Asian Development Bank (ADB) Sign $105 Million Loan to Support Hydropower Transmission in Himachal Pradesh
Government of India and the Asian Development Bank (ADB) sign $300 Million Loan to support India
Infrastructure Finance Company Limited (IIFCL)in India

Automobiles

Bad news: reported slowdown in the pace of car sales growth
Car sales are a leading indicator of economy activity.
So, the likely deceleration — growth in car sales is expected to skid to a fouryear low to below 6% this fiscal — would
be seen as a sign of the economy being in trouble, due to lax consumer demand.
Apparently, multiple factors that include rising fuel costs, higher insurance premium, reduced lending by NBFCs and price increases by auto companies have come as speed breakers.
However, the slowdown provides an opportunity for India to take measures to step up the use of
public transport and also make it more efficient.
Patchy investment in public transport to try and deal with relentless demand growth stems from arbitrary transport planning.
That, in turn, leads to wastage of resources and unmet demand.
Increasingly, as industry and services grow faster than agriculture, people will migrate from village to town.
They will have to be housed in new towns as the existing ones are already overcrowded.
These new towns should be planned in a way that reduces commutes and deploys public transport where commutes cannot be avoided.
The need is to plan and invest in metro rail systems in new towns, and supplement it with feeder bus services to make multi-modal transport seamless.
Energy-efficient personal transport should be planned, as well, for stretches that do not have bus or train connectivity.
The goal should be to let electric vehicles drive road transport so that the economy can move away from oil.
It will help abate pollution in towns.n Cars should not just be powered by electricity, which does not require imported oil to generate, but also bemshared, so that the capital it embodies is put to maximum use.