Day 38 Mains Questions – Ace Answer Writing Program

Question 1: Examine India’s strategy for securing critical minerals and its implications for the country’s economic and strategic interests. (10 Marks, 150 words)

Introduction

Critical minerals such as lithium, cobalt, and rare earth elements are essential for high-tech industries and clean energy technologies. India’s strategy aims to ensure a stable supply of these minerals to boost its economic and strategic interests.

Body

Securing Critical Minerals –

1. Domestic Production Reforms: Implementing the Mines and Minerals (Development and Regulation) Amendment Act, 2023, to increase private sector involvement and production by removing six minerals from the atomic minerals list (example: Private sector engagement in mining operations).
2. Central Government Auctions: Conducting mineral concession auctions by the central government with revenues benefiting state governments (example: Central auctions for critical minerals).
3. Increased Private Investment: Encouraging private investment in domestic production to boost output and self-reliance (example: Private sector investment in domestic lithium extraction).
4. International Partnerships – MSP: Joining the Mineral Security Partnership (MSP) in June 2023 to collaborate on building reliable supply chains and acquiring critical mineral assets abroad (example: MSP support for PSUs in acquiring assets).
5. Joint Ventures and Technology Transfers: Securing minerals through agreements with countries like Australia and Canada for joint ventures and technology transfers (example: India-Australia agreement for lithium supply).

Implications for Economic and Strategic Interests –

1. Economic Growth: Securing critical minerals is crucial for the growth of high-tech manufacturing and the renewable energy sector (example: Boost to electric vehicle manufacturing).
2. Energy Security: Ensures stable supply for renewable energy technologies, reducing reliance on fossil fuels (example: Solar panel and battery production).
3. Strategic Autonomy: Reduces dependency on geopolitical adversaries for essential minerals (example: Reducing reliance on China for rare earth elements).
4. Job Creation: Promotes domestic industries, leading to job creation and skill development (example: New mining and processing units).
5. Technological Advancements: Encourages innovation and development of new technologies in mining and recycling (example: Development of advanced recycling technologies for lithium-ion batteries).

Conclusion

India’s comprehensive strategy for securing critical minerals underpins its economic and strategic ambitions, fostering growth in high-tech industries and renewable energy sectors. This approach not only supports economic development but also enhances national security and technological self-reliance.

Additional Data, Committees, Examples for Value Addition –

1. NITI Aayog: Role in formulating policies for critical mineral security (example: NITI Aayog’s framework for critical minerals).
2. National Mineral Policy 2019: Emphasizes sustainable mining and exploration (example: National Mineral Policy’s focus on critical minerals).
3. International Collaborations: India-Japan collaboration on rare earth elements (example: India-Japan agreement for rare earth supply).
4. FAME II Scheme: Incentives for electric vehicles to boost demand for critical minerals (example: Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) India scheme).

Question 2: Analyse the key factors influencing the location and distribution of IT industries in India. Discuss regional disparities in IT sector development. (10 Marks, 150 words)

Introduction

The IT industry in India is a major contributor to economic growth, employing millions and contributing around 8% to GDP. The location and distribution of IT industries are influenced by several factors.

Body

Key Factors Influencing Location and Distribution –

1. Skilled Workforce: Availability of a large pool of skilled professionals from top engineering colleges (example: Bangalore with institutions like IISc and IITs).
2. Infrastructure: Well-developed infrastructure including transportation, power, and internet connectivity (example: Hyderabad’s HITEC City).
3. Government Policies: Supportive policies and incentives such as tax breaks and SEZs (example: IT parks in Pune and Chennai).
4. Proximity to Clients: Nearness to major business hubs and international airports (example: Mumbai as a financial hub).
5. Quality of Life: Urban amenities, living conditions, and cosmopolitan culture attract talent (example: Bangalore’s cosmopolitan environment).

Regional Disparities in IT Sector Development –

1. South vs. North: Southern states like Karnataka, Tamil Nadu, and Telangana dominate IT, while northern states lag (example: Bangalore vs. Lucknow).
2. Urban vs. Rural: Concentration in urban centers leaves rural areas underdeveloped (example: Hyderabad vs. surrounding rural Telangana).
3. Tier 1 vs. Tier 2 Cities: Major growth in Tier 1 cities like Bangalore, Hyderabad, and Pune compared to Tier 2 cities (example: Pune vs. Nagpur).
4. State Initiatives: Varied state government initiatives lead to unequal development (example: Tamil Nadu’s TIDEL Park vs. Bihar’s nascent IT policies).
5. Economic Disparities: Wealthier states attract more investment in IT infrastructure (example: Maharashtra vs. Jharkhand).

Conclusion

Addressing regional disparities requires balanced development strategies, inclusive policies & investment in infrastructure across all regions to ensure growth of IT sector.

Question 3: Discuss the significance of lithium in the global economy and evaluate India’s potential for lithium exploration and production. (15 Marks, 250 words)

Introduction

Lithium, a key element in rechargeable batteries, is critical for modern technology and renewable energy solutions, making it a cornerstone of the global economy.

Body

Significance of Lithium in the Global Economy –

1. Electric Vehicles (EVs): Lithium-ion batteries are essential for EVs, driving the shift towards sustainable transportation (example: Tesla).
2. Renewable Energy Storage: Lithium batteries store energy from renewable sources like solar and wind (example: Tesla Powerwall).
3. Consumer Electronics: Essential for smartphones, laptops, and other gadgets (example: Apple’s iPhones).
4. Strategic Importance: Countries with lithium reserves gain geopolitical leverage (example: Bolivia’s lithium triangle).
5. Economic Growth: Boosts economies of producing nations through mining, processing, and exports (example: Australia’s lithium industry).

India’s Potential for Lithium Exploration and Production –

1. Resource Identification: Initial discoveries in Karnataka and Jammu & Kashmir indicate potential reserves (example: 14,100 tonnes in J&K).
2. Strategic Initiatives: Government initiatives like Khanij Bidesh India Limited (KABIL) to secure lithium assets abroad (example: KABIL’s MoU with Argentina).
3. Domestic Production: Plans to boost local mining and processing to reduce dependency on imports (example: Exploratory surveys by Geological Survey of India).
4. Technological Collaboration: Partnerships with countries like Australia and Chile for technology transfer and joint ventures (example: Agreement with Australia for critical minerals).
5. Policy Support: Government policies to incentivize lithium mining and battery manufacturing (example: PLI scheme for Advanced Chemistry Cell Battery Storage).

Conclusion

Enhancing lithium exploration and production is vital for India to secure its energy future and technological advancement. Addressing challenges such as environmental concerns and establishing robust supply chains will be key.

Additional Data, Committees, Examples for Value Addition –

1. IEA Report: Highlights growing global demand for lithium by 2040 (example: IEA’s Global EV Outlook 2021).
2. NITI Aayog: Recommendations for boosting lithium production (example: NITI Aayog’s policy framework for EVs).
3. Geological Survey of India (GSI): Ongoing surveys for lithium deposits (example: GSI’s exploration initiatives in Rajasthan).
4. Khanij Bidesh India Limited (KABIL): Focus on acquiring lithium assets abroad (example: KABIL’s international collaborations).