India’s Agreement with ADB for Horticulture Productivity

India has signed a $98 million loan agreement with the Asian Development Bank (ADB) aimed at improving horticulture productivity. This initiative focuses on enhancing plant health and providing disease-free planting materials to farmers, thereby improving crop yield, quality, and climate resilience.

Key Aspects of the Loan Agreement

• Implementation:

  • The project will be implemented by the Ministry of Agriculture and Farmers Welfare through the National Horticulture Board (NHB) and the Indian Council of Agricultural Research (ICAR).

• Support for Atmanirbhar Clean Plant Programme (CPP):

  • This project aligns with the Atmanirbhar Clean Plant Programme (CPP), which aims to enhance plant health management in India by ensuring disease-free planting materials.

• Objectives:

  • To improve crop yield, quality, and climate resilience.

  • To support farmers in adapting to climate change through better plant health management and improved seeds resistant to pests and diseases caused by climate variability.

• Key Components of the Project:

  • Establishing Clean Plant Centres: These centres will maintain disease-free foundation materials, ensuring healthy plants for farmers.

  • Diagnostic Labs: Advanced diagnostic labs will be set up to identify diseases in planting materials.

  • Certification Scheme for Private Nurseries: The project will roll out a certification scheme for private nurseries, ensuring the quality of their seeds and plants.

Impact of the Project

• Improved Crop Productivity: By providing disease-free planting materials, the project will lead to improved crop yields and higher-quality produce.

• Climate Resilience: Promotes the use of climate-resilient plants, helping farmers manage the impacts of rising temperatures and changing pest/disease behavior.

• Better Plant Health: The focus on plant health will improve the overall sustainability of Indian horticulture and ensure better returns for farmers.

Horticulture Production in India

• Horticulture's Importance: Horticulture plays a crucial role in India’s economy and nutrition, contributing significantly to employment, especially in rural areas. It supports food security and generates income for millions of farmers.

• Horticulture Production in 2023-24:

  • India’s horticulture production is estimated at 352.23 million tonnes, marking a slight decrease of 0.91% from the previous year (2022-23).

  • Increase in Production: Fruits, honey, flowers, plantation crops, spices, and medicinal plants saw an increase in production.

  • Decrease in Vegetables: There was a slight decrease in vegetable production during this period.

• India’s Global Horticulture Standing:

  • India is the second-largest producer of fruits, vegetables, tea, farmed fish, sugarcane, wheat, rice, cotton, and sugar.

Key Initiatives in India’s Horticulture Sector

1. Mission for Integrated Development of Horticulture (MIDH):

   • Launched in 2014, it aims for the holistic development of horticulture, focusing on crops like fruits, vegetables, root and tuber crops, mushrooms, spices, and medicinal plants.

2. National Horticulture Mission (NHM):

   • Launched in 2005, it seeks to promote sustainable growth in the sector, improving production, nutrition security, and farmers' income.

3. Horticulture Cluster Development Programme (HCDP):

   • Focuses on leveraging regional specialization for integrated development of horticulture clusters, enhancing exports, and global competitiveness.

4. Soil Health Card Scheme:

   • Provides soil testing and crop-wise nutrient recommendations to farmers, helping them make informed decisions to improve yield and reduce input costs.

5. Horticulture Mission for North East and Himalayan States (HMNEH):

   • Promotes horticulture development in North East and Himalayan regions, with a focus on sustainable farming practices and region-specific crops.

Challenges in the Horticulture Sector

1. Infrastructure Deficiencies:

   • There is a lack of adequate cold storage and transportation facilities, leading to high post-harvest losses.

2. Market Access Issues:

   • Farmers struggle to access markets and fair pricing, which impacts their income and profitability.

3. Sustainability Concerns:

   • There is a need for more sustainable farming practices to ensure the long-term viability of the horticulture sector.

Future Outlook

• The future of India’s horticulture sector appears promising, with growing domestic and global demand for high-quality horticultural produce.

• Government Support: Continued government initiatives and support will further boost the sector's growth, ensuring food security, job creation, and economic development.

• Innovation and Investment: With the introduction of innovative techniques, including biofortification, hybrid crops, and better seed technologies, India’s horticulture sector has the potential to meet future challenges and increase its contribution to the economy and global food systems.

Conclusion

India’s collaboration with the Asian Development Bank (ADB) and the ongoing efforts to improve plant health through the Atmanirbhar Clean Plant Programme will significantly enhance the productivity and resilience of the country's horticulture sector. By addressing existing challenges, such as infrastructure issues, and introducing advanced technologies, the horticulture sector is poised for sustainable growth, contributing to both the economy and global food security.

The Great Stupa of Sanchi

Recently, a two-day Mahabodhi Mahotsav was held at the Great Stupa at Sanchi in Madhya Pradesh, drawing attention to this iconic Buddhist monument and its cultural significance.

About the Great Stupa of Sanchi

The Great Stupa of Sanchi is one of the most prominent and well-preserved examples of Buddhist architecture in India. It holds immense historical, religious, and cultural importance, particularly for Buddhism and its followers.

What is a Stupa?

A stupa is a Buddhist commemorative monument built to house sacred relics of the Buddha or other revered Buddhist saints. It is typically a hemispherical structure, symbolizing the Buddha's enlightenment, and is often adorned with sculptures, carvings, and other artistic features related to the Buddha’s life and teachings.

• Pre-Buddhist Origins: The stupa has its origins in pre-Buddhist burial mounds, which were simple mounds of earth built to commemorate the dead.

• Buddhist Evolution: With the rise of Buddhism, these mounds evolved into more complex structures to house sacred relics, often containing scriptures or remains of the Buddha and important monks.

Historical Background

• Commissioned by Emperor Ashoka: The Great Stupa at Sanchi was commissioned by Emperor Ashoka in the 3rd century BCE. Ashoka, after his conversion to Buddhism following the Kalinga War (c. 261 BCE), became a prominent patron of Buddhist architecture and religious institutions.

• The stupa was built to house the relics of the Buddha, and it became a major center for Buddhist worship and pilgrimage.

Structure and Architectural Features

• Hemispherical Dome: The Great Stupa has a hemispherical dome made of stone and brick. This shape symbolizes the Buddha’s enlightenment and his journey towards Nirvana.

• Relic Chamber: At the core of the stupa lies a relic chamber, which is the central structure where the relics of the Buddha were originally enshrined.

  • Over the centuries, the stupa has undergone renovations and additions, but the relic chamber remains central to its design.

• Harmika and Chhatraveli:

  • At the top of the dome, there is a harmika, a small square railing-like structure. This was built to hold a triple umbrella (chhatraveli), which symbolizes the three jewels of Buddhism:

    1. Buddha – the enlightened one

    2. Dharma – the teachings of the Buddha

    3. Sangha – the community of monks and practitioners

  • The chhatraveli is a symbol of the Buddha’s presence and enlightenment.

• Chatra: Above the harmika, there is a pillar-like structure called the chatra, symbolizing the Buddha’s presence and his enlightenment. The chatra is often seen as a mark of the Buddha’s spiritual authority and guidance.

• Toranas (Gateways):

  • The stupa is surrounded by four monumental toranas (gateways), each richly decorated with sculptures and carvings that narrate episodes from the Buddha's life. These gate structures are made from stone and are integral to the stupa's symbolism. The carvings depict events like the Buddha's birth, enlightenment, and first sermon at Sarnath.

UNESCO World Heritage Site

• The Great Stupa of Sanchi is designated as a UNESCO World Heritage Site due to its architectural and historical significance.

• It is also a pilgrimage site for Buddhists worldwide, who visit to pay homage to the Buddha and to reflect on the Buddhist teachings.

Importance in Buddhism

• The Great Stupa at Sanchi is a key symbol of Buddhist culture. It is not only a place of worship but also a significant educational and cultural center for spreading Buddhist philosophy.

• As one of the earliest and most impressive examples of Buddhist architecture, the stupa represents the spread of Buddhism across India and its influence on South Asian culture.

• It also reflects the era of Emperor Ashoka who played a key role in the patronage of Buddhism and the establishment of Buddhist monuments throughout India.

Significance in Ancient History

1. Ashoka’s Role in Buddhist Architecture: The Great Stupa of Sanchi marks a crucial phase in the patronage of Buddhism during the Mauryan Empire. Emperor Ashoka’s promotion of Buddhism led to the construction of several stupas across India, the most prominent being the ones at Sanchi, Bodh Gaya, and Lumbini.

2. Integration of Art and Religion: The artistic elements in the carvings of the toranas and other parts of the stupa blend religion and art, reflecting the cultural richness of India during the Mauryan period.

3. Religious Influence: The stupa represents a universal symbol of Buddhism, illustrating the philosophy of the Middle Path and compassion, core teachings of the Buddha.

Conclusion

The Great Stupa of Sanchi remains a monumental legacy of Indian history, Buddhist art, and Mauryan architecture. Its status as a UNESCO World Heritage Site underscores its significance as a cultural and religious symbol. This ancient stupa continues to inspire reflection on Buddhism, its principles, and its enduring impact on the world.

Oxford Lauds PRAGATI Platform

A recent study by Oxford University’s Saïd Business School (SBS) has lauded the PRAGATI (Pro-Active Governance and Timely Implementation) infrastructure monitoring system, recognizing its transformative role in improving governance and expediting infrastructure development in India.

Findings of the Study

The study evaluated the impact of PRAGATI on infrastructure development and governance in India. Here are the key findings:

1. Impact on Infrastructure Development

• Fast-tracked 340 projects worth a combined $205 billion. These projects faced critical challenges such as land acquisition and inter-ministerial coordination, which PRAGATI helped address.

• The system played a pivotal role in ensuring the completion of essential infrastructure services, including:

  • Roads

  • Railways

  • Water supply

  • Electricity distribution

2. Technological Innovation

• PRAGATI leveraged real-time data, drone feeds, and video conferencing to facilitate efficient decision-making and accelerate project implementation.

• The platform incorporated sustainability by promoting the use of green technologies and streamlining the process of obtaining environmental clearances.

3. Economic Transformation

• Infrastructure spending under PRAGATI has been shown to have a GDP multiplier effect. According to studies by the Reserve Bank of India (RBI) and the National Institute of Public Finance and Policy (NIPFP), each rupee spent on infrastructure yields a multiplier effect of ₹2.5 to ₹3.5 in economic output.

4. Social Benefits

• The PRAGATI platform has had substantial social benefits, particularly in improving the quality of life for millions of citizens by ensuring access to essential services.

• It has played a key role in ensuring inclusivity in development, making sure that even the most marginalized communities benefit from infrastructural advancements.

5. Addressed Bureaucratic Inertia

• One of the core successes of the PRAGATI platform has been its ability to address bureaucratic inertia and instill a "Team India" mindset.

• By fostering accountability across all stakeholders and ensuring that senior officials from the central and state governments interact directly with the Prime Minister, the platform helped overcome the inertia typically seen in large government projects.

6. Lessons for Global Development

• The PRAGATI platform is seen as a governance model that can be emulated by other countries, especially those grappling with challenges such as the Middle-Income Trap.

• Countries struggling with slow project implementation and inefficient governance can draw valuable lessons from PRAGATI in terms of technological integration, project acceleration, and inter-agency coordination.

About PRAGATI (Pro-Active Governance and Timely Implementation) Platform

Launch and Background

• PRAGATI was launched in 2015 under the leadership of Prime Minister Narendra Modi as a platform to address the issue of delayed project implementation and improve governance.

• The primary aim of the platform is to accelerate infrastructure development and ensure that critical projects are completed on time, with effective coordination between different government agencies at both state and central levels.

Core Objectives of PRAGATI

1. Expedite Project Implementation: To reduce delays in project completion by actively monitoring and addressing obstacles in real time.

2. Foster Collaboration: The platform brings together various government agencies, state governments, and the private sector to work on a collaborative approach to project execution.

3. Ensure Accountability: Through regular monitoring and high-level oversight, PRAGATI ensures that government officials remain accountable for the timely completion of projects.

Key Features of PRAGATI

• Technology Integration for Real-Time Monitoring: PRAGATI uses cutting-edge technology to monitor and track the progress of infrastructure projects, providing real-time updates on issues and bottlenecks.

• Direct Interaction: The platform enables direct interaction between the Prime Minister and senior officials at both state and central levels, ensuring that projects are on track and that any issues are promptly addressed.

• Breaking Administrative Silos: One of the primary goals of PRAGATI is to remove administrative silos by improving coordination between different departments and ministries, thereby speeding up the decision-making process.

• Centralized Data and Monitoring: The platform collects data from multiple stakeholders, including ministries, state governments, and public sector undertakings, to provide a comprehensive overview of ongoing projects.

Conclusion

The PRAGATI platform has proven to be a game-changer in India’s approach to governance and infrastructure development. By combining technology, real-time data, and high-level coordination, it has not only fast-tracked projects worth billions but also enhanced governance standards and accountability. Its success offers valuable lessons for other nations striving for effective and inclusive development, making it an exemplary model for governance in the digital age.

Windfall Tax

The Indian government recently abolished the windfall tax on exports of crude oil, aviation turbine fuel (ATF), petrol, and diesel. This decision comes after the government imposed the tax in 2022 to capture extraordinary profits in the wake of high global oil prices, largely driven by geopolitical events like the Russia-Ukraine war.

About Windfall Tax

Definition

A windfall tax is levied on industries or companies that experience extraordinary profits due to unforeseen favorable market conditions, which are not a result of their own efforts, innovation, or efficiency. Such conditions might include:

• Surges in global prices (such as crude oil, metals, or agricultural products)

• Unforeseen geopolitical events (like wars or supply chain disruptions)

These profits are considered windfalls because they arise unexpectedly, often due to factors outside the control of the company or industry.

Purpose of Windfall Tax

• The goal of a windfall tax is to capture a portion of these extraordinary gains and utilize the funds for public welfare, infrastructure development, or to address fiscal deficits.

• It is also a mechanism to address wealth inequality by redistributing unexpected corporate profits to benefit the larger population.

Introduction of Windfall Tax in India

• Introduced in July 2022, the windfall tax targeted domestic crude oil producers and exporters of petroleum products (such as petrol, diesel, and ATF). The tax was aimed at companies that were benefitting from soaring global oil prices during the Russia-Ukraine conflict.

• Geopolitical Factors: The surge in oil prices was largely due to the disruption of supply chains resulting from the Russia-Ukraine war and the sanctions imposed on Russian energy exports. This led to higher profits for oil producers, prompting the government to impose the windfall tax.

Key Features of the Windfall Tax (as initially introduced)

1. Tax on Domestic Crude Oil Producers: Domestic oil producers like ONGC (Oil and Natural Gas Corporation) faced a windfall tax on profits earned from the sale of crude oil. These producers benefited from the rise in global crude oil prices without any additional effort on their part.

2. Export Tax on Petroleum Products: The government also imposed a windfall tax on exports of refined petroleum products such as diesel, petrol, and aviation turbine fuel (ATF). This was done because Indian refineries were benefiting from the price differential between global and domestic prices, which had widened due to the surge in oil prices.

Reasons for Abolishing Windfall Tax

The government’s recent move to abolish the windfall tax can be attributed to several key factors:

1. Stabilizing Global Oil Prices:

   • Crude oil prices have significantly fallen from their peak levels in 2022. The geopolitical tensions around the Russia-Ukraine war that contributed to the price surge have somewhat stabilized, and global oil markets have started to balance.

   • As oil prices have reduced, the extraordinary profits that the windfall tax was targeting have diminished, making the tax less relevant.

2. Boosting Domestic and Export Sectors:

   • The removal of the windfall tax is seen as an effort to boost investments in the oil and gas exploration and production sectors. High taxes on profits can discourage investment in these capital-intensive industries.

   • Additionally, the move could incentivize domestic oil producers and refining companies to focus on increasing production and exports, thereby strengthening India’s oil industry in the global market.

3. Encouraging Business Confidence:

   • By abolishing the windfall tax, the government aims to restore business confidence in the oil and gas sector. This is particularly important for attracting foreign investments in the energy sector, which is crucial for India’s long-term energy security and economic growth.

4. Fiscal Considerations:

   • As the economy recovers, the government might prioritize creating a business-friendly environment, reducing the burden on industries that are sensitive to taxation, such as oil and gas.

   • The government may also want to focus on generating revenue through other mechanisms, particularly as oil prices stabilize.

Impact of Abolishing Windfall Tax

1. Positive Impact on Oil Industry: The removal of the windfall tax is likely to boost the profitability of domestic oil producers and exporters. It can enhance their financial health and support the continued expansion of India’s refining and oil extraction capabilities.

2. Increased Investment: The move may also attract increased investment in oil exploration and production, particularly in the context of oil discovery and enhancing refining capacities.

3. Global Competitiveness: India is one of the largest oil importers and refining hubs. With the windfall tax removed, Indian refineries may be more competitive in the global market, potentially increasing exports of refined products, such as diesel and petrol.

Conclusion

The abolition of the windfall tax is a strategic move by the Indian government to foster a favorable business environment in the oil and gas sector, especially as global oil prices stabilize. The decision helps to balance the need for tax revenue collection during periods of market volatility while also ensuring that industries are not discouraged from expanding and investing in key infrastructure. As oil prices stabilize, the focus is now on promoting growth and investment in India’s energy sector.